Japan’s national debt hits record $8.48 trillion

Japan’s national debt reached a record ¥1,346.7 trillion ($8.48 trillion) at the end of June, underscoring growing pressure on government finances.

The Ministry of Finance said the combined value of government bonds, borrowings and short-term government securities rose by ¥2.8 trillion ($17.9 billion) from the end of March, Caliber.Az reports via Japanese media.

Regular government bonds accounted for the bulk of the debt, rising to ¥1,110.9 trillion ($7.00 trillion). This included ¥5.1 trillion ($32.2 billion) in GX economic transition bonds issued to finance decarbonisation investment.

Government short-term securities stood at ¥94.4 trillion ($594.7 billion), while borrowing from financial institutions totalled ¥40.5 trillion ($255.4 billion).

The debt is expected to rise further, reaching ¥1,492.8 trillion ($9.41 trillion) by the end of fiscal 2026 after the government’s supplementary budget is taken into account.

Prime Minister Sanae Takaichi’s government is also planning to reduce the consumption tax on food products to 1% for two years from April 2027, with the measure expected to cost around ¥5 trillion ($31.5 billion).

Financial markets remain concerned about the impact of expansionary fiscal policy on interest rates.

By Aghakazim Guliyev