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Abe's call for snap election may prove fatal for Japan's fiscal reform

Japan's ballooning public debt has not bothered the bond market much so far

Reuters  |  TOKYO 

Even as a new party under a populist female leader scrambles the outlook for Japan's general election next month, one thing is clear: the winner will loosen a grip on the government's runaway debt as lawmakers forego higher taxes or boost spending. Prime Minister Shinzo Abe wants to use the revenue from a planned sales-tax hike not to pay down debt but to spend more on education and other popular programmers. Tokyo Governor Yuriko Koike, whose "Party of Hope" is challenging Abe's ruling coalition by effectively absorbing Japan's largest opposition party, ...

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First Published: Fri, September 29 2017. 13:14 IST