Japanese Government Intends To Issue 10 Trillion Yen Revival Of Renewable Debt

　　 Japan The government intends to issue 10 trillion yen (above US $121 billion) "revival of renewable debt" for the second supplement in fiscal 2011. budget Financial resources of the case.

To avoid National debt With the further increase of fiscal deficit, the "revival of renewable debt", which is considered to be issued, will be different from ordinary treasury bonds. Issuing bonds will also establish the source of debt repayment funds. Katsuyaokada, the ruling Democratic Party governor, said on the 18 day that the "revival of renewable debt" will be repaid through new taxes. The Democratic Party and the government will explore the ways, timing and scale of the tax increase next.

It is also reported that the Japanese government intends to raise the consumption tax from the beginning of fiscal year 2012, from 5% to 8% at this stage. The new consumption tax revenue will be devoted to post disaster reconstruction and the duration of the levy will be 3 years. It is estimated that the consumption tax will be increased by 3 percentage points, and the Treasury will increase its tax revenue by about 7 trillion and 500 billion yen (about 90 billion 700 million US dollars) each year.

According to the Japanese government's estimate, the direct loss of the East Japan earthquake is up to 25 trillion yen (about 300 billion 700 million US dollars).

The Japanese government is scheduled to submit the first supplementary budget for fiscal year 2011 to the Congress in late June, amounting to about 4 trillion yen (US $48 billion 400 million). According to the assumption of the Democratic Party's government, the first supplementary budget will not be raised through issuing bonds, mainly relying on the fiscal expenditure such as "crowding out" the burden of the pension fund in the original budget.