Japan PM says won’t rule out debt issuance to fund tax cut
Japan’s Prime Minister Sanae Takaichi speaks at the Lower House budget committee session at the parliament in Tokyo, Japan, October 14, 2026. REUTERS/Issei Kato
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TOKYO, Oct 19 : Japanese Prime Minister Sanae Takaichi said on Monday she would not rule out the chance of issuing bonds to fund a two-year cut to the country’s consumption tax scheduled from April next year.
The government will seek to stably lower the ratio of debt balance to gross domestic product (GDP) by reviewing both spending and expenditure, Takaichi told parliament.
“As we do this, we will appropriately control the size of annual bond issuance,” she said. “We would not rule out the chance of issuing bonds altogether,” Takaichi said, highlighting how the government could raise proceeds to fund the scheduled sales tax cut.
Takaichi also said Japan can heighten market trust in the yen by pursuing steps to strengthen the economy.
The government has laid out a plan to cut an 8 per cent levy on food items from April next year, as part of efforts to cushion the blow to households from rising living costs.
Source: Reuters
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