“I believe we have put together a budget that strikes a balance between achieving a strong economy and ensuring fiscal sustainability.”Securing a primary balance surplus has been a government goal for more than two decades. The primary balance at the national level is projected at a surplus of ¥1.34 trillion in the budget for the fiscal year starting in April, according to the finance ministry. Given that local governments have posted primary surpluses in recent years, Japan is likely to meet the primary balance target under the Cabinet Office measure. While the government hasn’t abandoned the primary balance as a yardstick for fiscal discipline, Finance Minister Satsuki Katayama said that the administration is looking at it over multiple years rather than focusing on single-year results. Japan’s government initially aimed to achieve a primary balance surplus in fiscal 2011 but kept pushing back the timeline for over a decade.

Source: The Edge Markets December 26, 2025 10:59 UTC