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On the 15th, the government approved the third supplementary budget for 2020, which received additional economic measures. The additional amount of spending in the general account is 21.8 trillion yen, and 22.4 trillion yen of new government bonds will be issued, including compensation for the decline in tax revenue.
The amount of expenses after deducting the reduction from the default cost was 15.4 trillion yen, and the total amount of expenses from the general account budget invoice for fiscal year 2008 reached a record 175.7 trillion yen. yen. The amount of the new government bond issue also reached a record 112.6 trillion yen, and the reliance on government bonds reached 64.1%.
The breakdown of the increase in annual spending is 4.4 trillion yen for measures against new infectious diseases from the corona virus, 11.7 trillion yen for support for post-crown structural transformation, and 3, 1 trillion yen for national resilience. The reserve fund, which remains close to 7 trillion yen, has been reduced to 5 trillion yen, and the default cost of 4.2 trillion yen has been lowered to generate financial resources.
On the 8th, the government decided on economic measures with a commercial scale of 73.6 trillion yen and a financial expense of 40 trillion yen. Of this amount, an additional expenditure of 19.2 trillion yen was recorded in the general account of the third amendment. The tax revenue forecast has been lowered from 63.5 trillion yen in the initial budget stage to 55.1 trillion yen. The breakdown of new government bonds to be used due to lack of financial resources are government bonds with a deficit of 18.5 trillion yen and government construction bonds of 3.9 trillion yen.
Finance Minister Taro Aso said at a press conference on the 15th that “it is a fact that the current financial situation will deteriorate” on the third amendment, and “balance economic revitalization and financial soundness so as not to damage financial credibility. “. It will proceed firmly. “He expressed his intention to quickly implement economic measures that will lead to the strengthening of growth potential with the aim of establishing it soon in the ordinary parliament next year.
Economic measures boost real GDP by about 3.6% – Enterprise scale is 73.6 trillion yen
In the revision of the government bond issuance plan accompanying the 3rd amendment, FILP bonds that are the source of FILP were reduced by 13.5 trillion yen, and the total amount of government bond issuance this year it dropped to 9.8 trillion yen more than at the time of the second amendment. The total amount is a record 263.1 trillion yen.
By curbing the increase in the total amount of government bond issuance, the amount of the calendar-based market issuance through bidding will not increase, but will remain at 212.3 trillion yen at the time of the second amendment. . We will respond by reversing 13.7 trillion yen of anticipated bonds that will be issued in the next fiscal year ahead of schedule.
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(Updated with comments from Minister of Finance Aso)
