Japan’s FY2020 Net Liability Grows at Fastest Rate Amid Pandemic

0

Ministry of Finance. (Mainichi)

TOKYO (Kyodo) — Japan’s finance ministry said Tuesday that the Japanese government’s debt has outstripped its assets at the fastest rate in fiscal 2020 as spending surged to stimulate the coronavirus-hit economy.

At the end of March 2021, the government posted record net liabilities of 655.2 trillion yen ($5.7 trillion), worsening 63.4 trillion yen from the previous year, which was the fastest pace rapid since comparable data became available in fiscal year 2003.

The data showed the country, which is already grappling with snowballing social security costs amid a rapidly aging population, could go bankrupt if it were a private venture.

Debt stood at 1.376 trillion yen at the end of fiscal 2020, up 102.9 trillion yen from a year earlier as the government provided cash assistance of 100.000 yen to all residents and up to 2 million yen in assistance to small and medium-sized businesses in shock. of the pandemic.

Assets were 720.8 trillion yen, up 39.5 trillion from the previous year, partly due to an expansion of government lending to government-affiliated financial institutions for a program to scale up lending to small businesses affected by the pandemic.


Source link

Share.

Comments are closed.