Japan's public debt has increased to its highest level in the country's history at the end of 2024, amounting to almost 1,317 trillion yen (almost $8.7 trillion at current exchange rates). TASS reports that the Japanese Ministry of Finance reported this.
The amount of debt has increased by 31.8 trillion yen (more than $205 billion) compared to the end of 2023. As Kyodo news agency notes, the current Japanese government is unlikely to be able to reduce the debt, as it does not have a majority in the lower house of parliament, which approves the state budget, and is under pressure from the opposition, which demands tax cuts and increases, in particular, education spending. Japan's budget deficit in this fiscal year (April 2024-March 2025) is 34.95 trillion yen (almost $230 billion). It is covered by the issuance of government bonds on account.
Their amount has decreased over the past three years, but Japan's budget dependence on debt obligations remains at about 30%. The country's public debt is more than twice as high as national GDP. At the same time, the vast majority of government bonds are in the hands of Japanese legal entities and individuals, which reduces the risk of default.
