Japan To Issue Bonds To Plug Revenue Shortfall

Japan to issue bonds to plug revenue shortfall

Japan's government plans to issue additional bonds to cover an expected tax revenue shortfall for fiscal 2019 ending in March. The government plans to include the issuance in a planned supplementary budget.

Officials had projected that tax revenues would reach a record 62.4 trillion yen, or about 575 billion dollars, for the year.

But they now believe revenues will fall short by between two to three trillion yen, or about 21 billion dollars.

Officials attribute this to smaller corporate tax payments. Business earnings have been hurt by the US-China trade dispute and other factors.

An additional issuance of deficit-covering bonds during the fiscal year would be the first in three years.