TOKYO -- Japan will not generate a primary budget surplus until fiscal 2027, the Cabinet Office said Wednesday, walking back the most recent estimate projecting fiscal parity a year earlier.
This means that the government will miss its goal of achieving a primary balance by two years. The government's fiscal 2025 target, as well as the Cabinet Office's January estimate predicting a fiscal 2026 primary surplus, both relied on exceedingly optimistic economic growth estimates, necessitating reassessments.
