The outstanding balance of Japanese government debt hit a record high of ¥1.32 quadrillion ($8.67 trillion) at the end of 2024, the Finance Ministry said Monday.
The combined balance of Japanese government bonds (JGBs), borrowings and financing bills swelled by ¥7.2 trillion from the end of September last year.
The increase mainly reflected a massive supplementary budget compiled by the government to finance its comprehensive economic policy package late last year. Nearly half of necessary funds were covered by additional JGB issuance.
Of the latest total, ordinary JGBs increased by ¥5.69 trillion to ¥1.07 quadrillion and borrowings expanded by ¥2.32 trillion to ¥46.88 trillion, while financing bills decreased by ¥2.7 trillion to ¥97.2 trillion.
In its budget bill for the fiscal year from April, the government plans to issue ¥28.65 trillion of new JGBs, the lowest figure in 17 years. Still, debt servicing costs are estimated to hit a record high, reflecting the Bank of Japan’s interest rate hikes.
With Prime Minister Shigeru Ishiba leading a minority government, his administration may face growing pressure from both the ruling and opposition camps to spend more.
