Japan to issue $258.5 billion in new bonds

According to Reuters, Japan is going to issue bonds for the annual budget for fiscal year 2023/24. As the government source said, the amount of bonds would be 35.5 trillion yen ($258.52 billion). Thus, the debt, which is the largest public debt among industrial countries, will increase even more. 

On the other hand, it is noted that the new borrowing is less compared to the last year's one, which amounted to 36.9 trillion yen. According to the source, by doing so, the Japanese authorities are seeking to reduce borrowing costs.

Tax revenue is estimated to exceed 69 trillion yen, which will help reduce the new debt. Also, it’s supported by a weak yen, which has boosted exporters' profits. 

While planning the budget, officials try to find a balance between all necessary spending. However, the increased defense and welfare costs for a rapidly aging population makes it more complicated.

Since the budget plan hasn’t been announced yet, the source preferred to remain anonymous.