TOKYO (Reuters) – Japan’s government will aim to achieve its fiscal target bearing in mind the sharp rise in spending to combat the COVID-19 pandemic, Nippon TV reported on Friday.
“Japan must lay the groundwork for fiscal reform before its baby boomers reach 75 or older,” a draft of a fiscal blueprint obtained by Nippon TV showed.
The government will present the fiscal blueprint for approval by the cabinet on June 9, Nippon TV said.
Huge government spending to cushion the economic blow from the pandemic has strained Japan’s already tattered finances by adding to its massive debt pile, which is the biggest among major industrialised nations.
Japan’s baby boomers reach 75 around 2025, leaving the country little time to get its fiscal house in order before social welfare costs balloon from already large levels.
(Reporting by Leika Kihara; Editing by Chang-Ran Kim & Shri Navaratnam)
