Editorial

15:52 JST, June 7, 2025

It will only be possible for the government to obtain public understanding of its policy if it achieves both economic growth and fiscal consolidation. Rather than relying on tax cuts, the government should deepen its strategy to increase take-home pay by expanding the overall economic pie.

The government has compiled a draft of its Basic Policy on Economic and Fiscal Management and Reform. The target for achieving a surplus in the combined primary balance of the central and local governments has been moved back from fiscal 2025 to fiscal 2025-26.

The primary balance is an indicator of the amount of policy spending that can be covered through tax revenues and other means, without relying on debt. Since 2002, the government has positioned the goal of achieving the primary balance surplus as a pillar of its fiscal consolidation plan.

The government has had its sights set on achieving........

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