Next year's budget plan, record maximum 106.6 trillion yen tax revenue decrease and government bond increase

The government is 21 days, the general account of the initial total of 106 trillion 609.7 billion yen, consisting of 2021 fiscal year budget approved by the Cabinet was. It increased by about 3.9 trillion yen from the previous year and reached a record high for the ninth consecutive year. It is the third consecutive year that it has exceeded 100 trillion yen. Tax revenues will fall due to the impact of the new coronavirus, and the amount of new issuance of government bonds, which is a national debt, will increase for the first time in 11 years as the initial budget. Approximately 40% of the budget will depend on debt, and the financial situation will become even more severe.

　A record-high reserve fund of 5.5 trillion yen has been recorded so that we can quickly respond to the spread of the new coronavirus infection. A total of 43.4 billion yen was allocated to add medical fees for pediatric outpatients and general medical care as a measure against infection, 600 million yen was included to strengthen the health center system, and 20.7 billion yen was included to strengthen border measures.

Social security expenses,　which account for about one-third of total expenditures, increased by about 150 billion yen from the beginning of the previous fiscal year to 35,842.1 billion yen. Remuneration for nursing care and disability welfare services, which are reviewed once every three years, will be raised, including special cases to support corona support, which will lead to improved treatment at the site. On the other hand, the official price of medical drugs , the "drug price," will be reduced, and the national social security costs will be reduced by about 100 billion yen. Due to the temporary slowdown in the growth of the elderly population, the growth of social security costs was smaller than usual.

　In the area of ​​childcare and education , in order to eliminate waiting- list children, we will prepare about 140,000 childcare trays in four years from 2009, and reduce the number of one class in public elementary schools to 35 or less in five years from next year. From next year, we have included 300 million yen required to implement it for elementary school students.

　Defense costs reached a record high of 5,323.5 billion yen for the seventh consecutive year. 57.6 billion yen was recorded as the development cost of the next fighter, which will be the successor to the F2 fighter of the Japan Air Self-Defense Force .

　This is the first budget compilation by the Suga administration , and 8.1 billion yen will be invested as expenses related to the establishment of the IT policy command tower " Digital Agency " that Prime Minister Suga has pledged . As the tax revenues of local governments will decrease due to the economic downturn caused by the corona , the local allocation tax distributed to local governments will be increased by 139.6 billion yen to 15,948.9 billion yen.

　The revenue side that covers the swelling costs of corona support is just a fire truck. Due to the economic downturn caused by the corona, tax revenue is expected to decrease to 57,448 billion yen, the first decrease in 11 years as the initial budget. It will decrease by more than 6 trillion yen from the beginning of the previous year, which was expected to reach a record high. To make up for this, the amount of new government bonds issued will be 43,579 billion yen, which will initially exceed 40 trillion yen for the first time in seven years. As a result, the outstanding amount of government bonds issued at the end of next fiscal year is expected to reach the level of 1,000 trillion yen, reaching 990,306.6 billion yen.

Source: https://www.asahi.com/articles/ASNDP33M6NDLULFA03D.html