The year 2020 has increased further Japan’s worries. According to the latest data released by the Ministry of Labor of Japan, due to the corona epidemic, the number of unemployed people in the country has reached about 80 thousand. Among those who lost their jobs this year, there were about 38 thousand irregular employees. People from the manufacturing to food and drinks sectors lost employment this year. Meanwhile, the news also came that the country’s fiscal condition has deteriorated further.
This year, due to Corona epidemic, the government had to spend a lot of money from its fund. For this, he has to resort to debt. In this financial year, Japan issued 112 trillion yen bonds. This is the record so far. Even during the 2009 recession, it is equal to two times the amount of debt the government took. Experts say that it was necessary to increase government spending due to the Corona epidemic. But now she has to consider how she will deal with the problem of debt. If its effective method is not found, it can have very bad consequences for the country’s economy.
Takero Doi, a professor and finance expert at Kio University in Japan, told the Japan Times newspaper here – Japan has now reached a very difficult path of fiscal reconstruction. By the end of 2019, the Japanese government’s debt had reached 198 percent of its GDP. Now it has increased a lot.
Experts have expressed concern that the Japanese government has not yet prepared a roadmap to repay the debt. He pointed out that the European Union is considering increasing taxes to pay off its debt. In this connection, it has proposed a digital tax. Doi said- But no such discussion is heard in Japan. It seems that people’s understanding of healthy fiscal management is paralyzed.
In 2011, there was a deadly earthquake in Tohoku area of Japan. The then government implemented special measures to make up for the loss. Under this, a two-year special corporate tax was imposed. Also, the income tax of individuals was also increased, which will continue till 2037. Through these measures, the government had arranged to raise an additional amount of 10 trillion yen. But this time there is no such discussion. While the government has given two relief packages. Under this, assistance of 117 trillion yen was given both times. Now the third package is ready to be given. This incentive package will be 73.6 trillion yen.
The government claims that by 2025 it will bring the country’s budget to a state of profit. But experts are of the view that it will not be easy to achieve this goal. Government officials say that the value of Japan’s total household wealth is still higher than the government’s debt. So the government is in a position to continue issuing bonds. Then he also has the option of printing additional notes. Based on this principle, Japanese banks have been buying property abroad. But many experts consider such thinking negligent. According to him, if the plan for financial discipline is not revealed, Japan could be trapped in a deep economic crisis.