Japan should still keep an eye on its primary balance, according to a Finance Ministry advisory panel, even after Prime Minister Sanae Takaichi signaled a shift away from a long-standing ministry target of achieving a surplus.
“The primary balance remains a very important flow indicator for finance, so we told the government it needs to keep that firmly in mind when putting together next year’s budget,” Hiroya Masuda , acting chief of the panel, told reporters after submitting its recommendations Tuesday. The primary balance refers to the difference between government revenue and spending excluding debt servicing outlays.
Japan Panel Pushes Back on Takaichi’s Primary Balance Downgrade
