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Japan's National Debt Surges to Record USD8.58T
(MENAFN) Japan's central government debt surged to a historic 1,343.84 trillion yen — equivalent to approximately 8.58 trillion U.S. dollars — by the close of March, marking a record high for the tenth consecutive year, according to fresh data released Friday by the country's Ministry of Finance.
The staggering figure represents a 20.13 trillion yen jump from the close of the previous fiscal year, underscoring the relentless pace at which Tokyo's liabilities continue to mount.
A detailed breakdown of the debt reveals that outstanding government bonds accounted for the lion's share at 1,207.22 trillion yen — a rise of 24.33 trillion yen — while borrowings stood at 44.32 trillion yen and short-term financing bills totaled 92.3 trillion yen.
Kyodo News reported that Japan's government continues to rely heavily on debt to finance its operations as rising prices and higher interest rates drive up policy-based expenditure.
Compounding the problem, Prime Minister Sanae Takaichi's administration — operating under a framework it describes as "responsible and proactive public finances" — has pursued supplementary budget packages and issued additional government bonds to combat inflation, measures that analysts warn have only deepened the country's debt spiral.
Tatsuaki Takano, a professor at Toyo University in Japan, said Japan's fiscal system is facing structural challenges as the ongoing trend of declining birthrate and aging population continues to erode fiscal space through ever-rising mandatory social security expenditures.
(1 Japanese yen equals approximately 0.0064 U.S. dollars)
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