The Japan Financial Services Agency released an English summary of a press conference with Finance Minister Katayama following the passage of Japan’s FY8 (Reiwa 8) budget, set at JPY 122.3 trillion, and his assessment of the fiscal stance and near-term economic support measures. Katayama highlighted that government bond issuance in the initial budget was below JPY 30 trillion for a second consecutive year, with lower reliance on bond financing than the previous year, and that the general account primary balance was in surplus for the first time in 28 years. He also referenced the IMF’s Article IV consultation and positioned Japan’s single-year deficit-to-GDP ratio as comparatively strong within the G7. On current support measures, he pointed to subsidies aimed at reducing prices for gasoline, diesel, heavy oil and kerosene, and said public and private financial institutions were asked to strengthen cash-flow management, including via reduced interest rates on safety-net loans and other measures such as deferred repayments. The briefing also noted that a previously enacted provisional budget totalled JPY 8.5641 trillion, with around JPY 7.5 trillion already spent and to be absorbed into the FY8 budget, and referenced budgeted items including medical and nursing fee revisions, support for GX, AI and semiconductor investment, and increased public works-related spending. Responding to questions on whether a supplementary budget may be needed given a JPY 1 trillion reserve fund and uncertainty linked to the Middle East, Katayama said it was too early to make estimates or consider amendments, while citing remaining capacity from past business support measures of about JPY 11 trillion in virtually interest-free, unsecured loans and capital-subordinated loans. He also said there was no concrete consideration at that stage of extending electricity and gas subsidies into the summer, noting uncertainty around energy-market developments and the lagged nature of fuel-cost pass-through into bills.
Japan Financial Services Agency 2026-04-09
Japan Financial Services Agency publishes Finance Minister Katayama briefing on JPY 122.3 trillion FY8 budget and sub-JPY 30 trillion bond issuance
The Japan Financial Services Agency released an English summary of Finance Minister Katayama’s press conference on the FY8 (Reiwa 8) budget, totaling JPY 122.3 trillion, with government bond issuance below JPY 30 trillion and a general account primary surplus for the first time in 28 years. Katayama highlighted Japan’s relatively strong single-year deficit-to-GDP position within the G7, ongoing price and cash-flow support measures, and absorption of a JPY 8.5641 trillion provisional budget into the main budget. He said it was too early to judge the need for a supplementary budget or extension of electricity and gas subsidies, citing about JPY 11 trillion in unused support capacity and uncertainty over energy markets.