In addition to social security, in Japan’s 2020 fiscal budget, defense spending increased 1.1% to 5,313.3 billion yen, a record high and marked the 8th consecutive year of increase.
The Japanese government on December 20 approved the next year’s budget of 102,658 billion yen (about US $939 billion), the largest ever, up 1.2% compared to 2019.
Spending on social security continues to account for a major portion of Japan’s 2020 fiscal budget with 35% of the total budget. The expected expenditure for social security in the fiscal year 2020 is 35,860.8 billion yen, an increase of 1,730.2 billion yen compared to fiscal 2019, which is equivalent to 5.1%.
This is the main reason for the total spending of the Japanese Government to increase.
In addition to social security, defense spending also increased by 1.1% to 5,313.3 billion yen, a record high and marking the 8th consecutive year of increase. This increase is supposed to strengthen and develop defense systems in new areas such as the universe, cyberspace, electromagnetic waves.
In contrast to the upward trend, spending on education and science of Japan in the fiscal year 2020 is estimated to decrease by 1.5%, expenditures related to public activities will also decrease by 0.8% compared to the fiscal year 2019.
In terms of budget revenue, with the increase in consumption tax from 8% to 10% from last October, Japan’s tax revenue will reach its highest level ever, but this amount is believed to be a gap compared to the government’s expenditure estimates, so Japan’s public debt will continue to rise.
Japan’s tax revenue estimate for the fiscal year 2020 is 63,513 billion yen, an increase of 1.6% compared to fiscal 2019. This increase will help Japan reduce its dependence on government bonds, expected total value. Bond issuance will be reduced by 0.5% compared to fiscal 2019, marking the 10th consecutive year of decline. However, due to the expansion of public works, Japanese government bonds for construction will increase by 2.3% compared to fiscal 2019.
Japan’s non-tax budget revenue for fiscal year 2020 is estimated at 6,588.8 billion yen, up 4.6%.
The total budget deficit of Japan in 2020 is forecast at 9,200 billion yen equivalent to 2019. The Cabinet meeting of the Government of Japan on December 20 also approved the tax regime reform outline for the fiscal course of 2020, which encourages businesses to use the existing accumulated capital from business activities.
According to the plan, the 2020 fiscal budget will be submitted to the Japanese National Assembly in January 2020 at the regular meeting and approved in the 2019 fiscal year (until April 2020).