News Navigator: Can Japan survive with more than $11 trillio

News Navigator: Can Japan survive with more than $11 trillion in debt?


News Navigator: Can Japan survive with more than $11 trillion in debt?
February 3, 2021 (Mainichi Japan)
This photo shows the Bank of Japan headquarters building in Tokyo's Chuo Ward. (Mainichi/Tsuyoshi Goto)
The Mainichi Shimbun answers some common questions readers may have about Japan's increasing debt of more than 1.2 quadrillion yen (about $11 trillion) amid the new coronavirus pandemic.
Question: Is it true that Japan's debt is increasing while battling the new coronavirus pandemic?
Answer: In fiscal 2020 -- which ends in March 2021 -- the new coronavirus has wreaked havoc, so the Japanese government has compiled a supplementary budget as many as three times to support household economies and businesses, increasing its annual spending to 175 trillion yen -- a record high. Meanwhile, its revenue from tax has declined due to the recession, and the government has issued a huge amount of national bonds to cover the revenue drop.

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