Expected interest rate raised to 2.1% to the required amount of government bond fees to around 28 trillion yen
In response to an estimate request for the next fiscal year's budget plan, the Ministry of Finance has a policy of raising the estimated interest rate for calculating interest payments on government bonds from 1.9% for this fiscal year to 2.1%. Reflecting the rise in long-term interest rates due to changes in the Bank of Japan's monetary policy, the amount required for government debt is about 28 trillion910 billion yen, which exceeds the current fiscal year budget by about 1 trillion900 billion yen.
In response to an estimate request for the next fiscal year 2025 budget plan, which is due at the end of August, the Ministry of Finance has a policy of raising the estimated interest rate for calculating interest payment costs on government bonds from 1.9% this fiscal year to 2.1% for “government bond expenses” used to redeem government bonds or pay interest.
The Bank of Japan lifted negative interest rates in March, and decided additional interest rate increases in July, reflecting an upward trend in long-term interest rates.
As interest payments increase, the amount requested for government bonds will be around 28 trillion910 billion yen, which exceeds this fiscal year's budget by about 1 trillion900 billion yen.
Regarding the estimate request for the next fiscal year's budget plan, defense spending is expected to increase as we proceed with drastic strengthening of defense capabilities, and social security expenses are also expected to increase as the aging population ages, and the total amount required for the general account is expected to exceed 110 trillion yen for 4 consecutive years and hit a record high.
In response to an estimate request for the next fiscal year 2025 budget plan, which is due at the end of August, the Ministry of Finance has a policy of raising the estimated interest rate for calculating interest payment costs on government bonds from 1.9% this fiscal year to 2.1% for “government bond expenses” used to redeem government bonds or pay interest.
The Bank of Japan lifted negative interest rates in March, and decided additional interest rate increases in July, reflecting an upward trend in long-term interest rates.
As interest payments increase, the amount requested for government bonds will be around 28 trillion910 billion yen, which exceeds this fiscal year's budget by about 1 trillion900 billion yen.
Regarding the estimate request for the next fiscal year's budget plan, defense spending is expected to increase as we proceed with drastic strengthening of defense capabilities, and social security expenses are also expected to increase as the aging population ages, and the total amount required for the general account is expected to exceed 110 trillion yen for 4 consecutive years and hit a record high.
Source: NHK News
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