Wednesday, February 28

Japan approves a record budget for 2022

  • The Japanese country puts the accent of its new accounts on social security and defense

Japan has approved a budget state record of 107.6 trillion yen (about 805.5 billion euros) by 2022, aimed at financing measures against covid and dealing with the rising costs of social security and defense.

The lower house of the Japanese parliament has approved the sum of the fiscal year that will begin in Japan on April 1, after the approval last February of the upper house. It was the third fastest enactment of Japanese budgets in post-war Japan and the record tenth year in a row. The largest budget item is allocated to social security, with a record of 36.27 billion yen (271,650 million euros) which represents a third of the total, and which is intended to deal with the rapid aging of the population and its consequent impact on healthcare and pensions. It also reaches a new historical maximum the game destined to defending5.4 trillion yen (40,480 million euros).

Japan seeks to finance the development of new technologies and increase its military assets in response to China’s increased activity in the Indo-Pacific and to counter the threat it sees in the nuclear and missile programs of North Korea, whose weapons tests have intensified. to record levels this year.

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Regarding the response to the persistent covid-19 pandemic, the Japanese government has secured 5 trillion yen (about 37.5 billion euros) as reserve funds for future measures, the same amount dedicated in fiscal 2021 , and that you can spend without the prior approval of the Diet (parliament). In the spotlight are potential additional stimuli to deal with the rise in fuel and raw material prices after Russia’s invasion of Ukraine and how to finance them.

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The new issue of Japanese bonds for the year of 2022 will be 36.93 trillion yen (277,000 million euros), 15.3% less than in the previous year; while 24.34 trillion yen (about 182,550 million euros) will be allocated for debt service costs, 2.4% more year-on-year. Japan is considered the country with the worst fiscal health among developed powerswith a debt that exceeds 250% of its gross domestic product (GDP).

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