Japan’s primary balance is once again set to miss its long-standing target of achieving a balanced budget by the year ending March 2026.
The primary balance, which excludes interest payments on public debt, is projected to remain in the red with a deficit of around ¥4.5 trillion ($28.8 billion) or minus 0.7% of gross domestic product in the fiscal year starting in April, according to the Cabinet Office’s latest mid-to-long term outlook report released Friday.
In its previous forecast in July, the government had predicted a surplus of around 0.1% of GDP for the year, meaning the country would finally hit its target for balancing the books at the primary level.
