Japan's government debt per capita surpassed 10 million yen, or roughly $75,000, for the first time at the end of June, data released Wednesday shows, as Tokyo poured money into tackling both the coronavirus pandemic and inflation.
Total outstanding bonds and borrowing reached a record 1,255.19 trillion yen ($9.43 trillion), up 13.9 trillion yen from the previous quarter. Based on the government's population estimate of 124.84 million as of July 1, this works out to 10.05 million yen per person -- nearly double the fiscal 2003 figure.
Though tax revenue hit an all-time high of 67 trillion yen last fiscal year as corporate earnings recovered, this growth was outpaced by rising spending.
Low rates have helped to hold down the cost of interest payments, but Japan's heavy reliance on debt means that a future rise in interest rates could prove painful.
Outstanding long-term debt, which must be repaid from tax revenue, dipped to 1,010.42 trillion yen -- 6.7 trillion yen less than at the end of March -- owing largely to repayments of previously issued bonds. ...continue reading
