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EDITORIAL: Regaining fiscal health an issue that has utmost priority

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The Kishida administration decided Jan. 14 to stick to the government’s fiscal rehabilitation goal of achieving a primary balance surplus in fiscal 2025.

The so-called baby boomer generation by then will be 75 years old or older, which inevitably will lead to expanded health care and other expenditures.

The administration made a meaningful decision to wean the nation from its dependence on deficit financing by the time that demographic landmark is reached.

Achieving a primary balance surplus, which means securing tax revenues that are greater than state expenditures, excluding debt interest payments, was considered a lost cause as the COVID-19 pandemic forced the government to ramp up spending.

However, a ray of hope emerged unexpectedly. While the pandemic delivered a heavy blow to the restaurant and tourism industries, many large corporations, particularly exporters, are reporting strong earnings, and the stock market is also performing well.

The government’s tax receipts in fiscal 2020, which ended in March 2021, posted a surprise increase.

According to new........

© The Asahi Shimbun

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