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2026-02-26 17:08:16
[Japan's Ministry of Finance Projects Interest Payments to Double in Four Years as Debt Costs Soar] ⑴ Japan's Ministry of Finance projects that interest payments on its outstanding debt will roughly double over the next four years as the Bank of Japan's gradual interest rate hikes increase borrowing costs. ⑵ A document released Thursday shows that interest payments are projected to reach ¥21.6 trillion in the year beginning April 2029, up from ¥10.5 trillion in the current fiscal year's budget. This projection assumes a nominal economic growth rate of 3% annually. ⑶ Overall, debt repayment costs are projected to rise by about 46% during the same period, reaching ¥41.3 trillion. This would account for about 30% of the projected total expenditures for fiscal year 2029 (¥139.7 trillion), exceeding expected social security spending. ⑷ The latest projections indicate that as the Bank of Japan continues its tightening policy, the financial pressures on the economy are increasing, while economic growth faces structural constraints.
