National debt to total $926.81 trillion
By The Yomiuri Shimbun
22 December 2016

TOKYO (The Japan News/ANN) - The Finance Ministry announced on Thursday that Japan’s national debt is likely to reach 1.094 quadrillion yen at the end of the fiscal year 2017, up some 21 trillion yen from the end of fiscal 2016.

Japan’s estimated national debt will total 1.094 quadrillion yen ($926.81 trillion) at the end of fiscal year 2017, up about 21 trillion yen ($178.56 billion) from the end of fiscal year 2016, according to the Finance Ministry. 

 The amount of the national debt — the combined long-term debt of the central and local governments — is expected to hit a record high, having increased by about 320 trillion yen in 10 years from fiscal year 2008. 

The fiscal year 2017 figure comprises the central government’s debt of 899 trillion yen and local governments’ debt of 195 trillion yen.

The estimated national debt is equivalent to 198 per cent of the country’s gross domestic product (GDP), a slight decrease from fiscal year 2016’s estimate of 199 per cent. 

The change is attributable to an expected increase in the GDP due to economic growth. However, the percentage is still the highest among developed nations. 

In the fiscal year 2017, the central government is expected to newly issue bonds, totalling 153.9633 trillion yen — including new borrowing and refinanced debt. 

The new issuance amount will be about 8.3 trillion yen lower than that for the fiscal year 2016, marking the third straight year of decline in new bond issuance called for in the year’s initial plan.

Making use of low yields of the Japanese government Bonds (JGBs) with the Bank of Japan’s negative interest rate policy, the government will issue 40-year bonds, totalling 3 trillion yen — up 600 billion yen from the initial plan for the fiscal year 2016.

Forty years is the longest maturity set for JGBs.

Meanwhile, the amount of new issuance of bonds with 20-year or a shorter term of maturity will be kept lower.

Source(s):

  • Natl debt to total ¥1.094 quadrillion

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