Japan's public debt projected to surpass $10 trillion in '10

Japan's central government is projected to owe at least $10 trillion (973.16 trillion yen) in debt at the end of fiscal 2010, an amount that translates into roughly $84670.11 (7.63 million yen) per capita, due to increased debt issues, budgetary documents presented by the government to the Diet showed today.

The central government debt refers to the outstanding balance of long-term bonds, borrowing and financial bills, a short-term debt instrument.

The balance is expected to top the $9.9 trillion (900 trillion yen) threshold for the first time at the end of fiscal 2009, to hit 900.14 trillion yen.

The projected rise, from an estimated $9.5 trillion (864.52 trillion yen) or 6.78 million yen per head as of September 30, is attributed to an increase in debt issues to a record level to cover slumping tax revenues to finance the 97.30 trillion yen budget for fiscal 2010, which ends March 31, 2011.

 

The size of the proposed fiscal 2010 budget represents the largest in Japan's fiscal history.

In fiscal 2010, the government is projecting around 37.39 trillion yen in tax receipts, down 18.9 per cent from fiscal 2009 on an initial budget basis, amid the slow economy.

Debt issues are estimated to increase 33.1 percent to a record $491 billion (44.30 trillion yen).