Sanae Takaichi reiterates: No deficit government bonds will be issued to finance food consumption tax cuts.

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智通财经2026/10/20 01:36

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Japanese Prime Minister Sanae Takaichi reiterated that she will not rely on special deficit bonds to cover national debt or to raise funds for food consumption tax reductions.
Previously, her remarks had sparked market speculation about a change in her position. Sanae Takaichi posted a clarification on the X platform, stating that she has not ruled out issuing national bonds for the overall national budget, but will not use special deficit bonds to fill the temporary tax gap caused by consumption tax cuts, and said the government's stance on this "remains unchanged."
Earlier on Monday, her speech in parliament was misinterpreted by some media outlets, prompting her to clarify. When questioned about the source of funds for the tax reduction at a meeting of the House of Councillors Budget Committee, Sanae Takaichi stated she does not rule out issuing national bonds.
She said that regarding the source of funds for the reduction in food and beverage consumption tax, the fiscal scale would be carefully evaluated within the broader framework of budget reform, aiming to lower the debt ratio while monitoring tax revenue trends and reviewing both revenue and expenditure.
She stated that, as in the previous fiscal year, the total annual issuance of national bonds would be managed appropriately through the initial and supplementary budgets, but this does not mean no government bonds will be issued at all.
The market is closely watching how Sanae Takaichi will implement the tax reduction policy without further increasing the national debt burden. The tax reduction plan is expected to cause an annual tax revenue loss of 5 trillion yen (approximately $31.5 billion), and is scheduled to begin in April and last for two years.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Sanae Takaichi reiterates: No deficit government bonds will be issued to finance food consumption tax cuts.

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