Key Facts
• August 7: Prime Minister Shigeru Ishiba addressed the Economic and Fiscal Policy Council.
• Announced plans to achieve a fiscal surplus (PB) for national and local governments by 2025-2026.
• Emphasized the importance of maintaining market trust.
• Government aims to reduce debt-to-GDP ratio to pre-pandemic levels.
• Cabinet Office revised 2025 real growth rate forecast from 1.2% to 0.7%.
• Fiscal surplus projections for 2025 and 2026 were raised due to increased tax revenue.
• 2026 fiscal surplus expected to expand further.
Summary
On August 7, Prime Minister Shigeru Ishiba announced plans to achieve a fiscal surplus for national and local governments as early as possible between 2025 and 2026. Speaking at the Economic and Fiscal Policy Council, he stressed the importance of maintaining market trust and reducing the debt-to-GDP ratio to pre-pandemic levels. The Cabinet Office revised its 2025 real growth rate forecast significantly downward, from 1.2% to 0.7%, but raised fiscal surplus projections for 2025 and 2026 due to increased tax revenue. The 2026 surplus is expected to grow further, reflecting the government’s commitment to fiscal stability.
