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2026-10-31 10:48:24
[Bank of Japan Accelerates ETF Sales, Potentially Providing Funding for Fiscal Spending] ⑴ The Bank of Japan announced on Friday that, starting next January, the annual sales volume of ETFs, based on book value, will increase from the current 330 billion yen to 860 billion yen, equivalent to US$5.5 billion. ⑵ With the accelerated sales, the time required to complete all sales is expected to be shortened from 112 years to approximately 43 years. ⑶ According to law, the Bank of Japan is required to remit surplus income to the government after deducting dividends and other expenses. The proceeds from ETF sales can increase the amount remitted, bringing additional non-tax revenue to the government. ⑷ Senior economist Taro Kimura estimates that the accelerated sales could generate approximately 800 billion yen in additional revenue annually for the Bank of Japan. This potential additional revenue will help Sanae Takaichi raise funds for her policies when preparing the next fiscal year's budget. ⑸ Her proposed policy commitments include a two-year food consumption tax reduction, a 14-year growth investment plan, and increased defense spending. (6) The additional funds deposited by the Bank of Japan may also be used to subsidize the special account for economic security planned by the current government. Kazumasa Ishii, a wealth management strategist at UBS Sumitomo Mitsui Trust and a former Cabinet Office official, said that the funds deposited by the Bank of Japan are more suitable for supporting multi-year projects than for filling the large temporary revenue gap caused by policies such as consumption tax cuts.
