Japan's debt must return to pre-COVID levels by fiscal 2030: watchdog

Finance Ministry advisory council says primary surplus only part of the goal

Japan has a much higher ratio of debt to GDP than other developed economies. © Reuters

KOSUKE TAKEUCHI

May 28, 2025 07:15 JST

TOKYO -- Japan should reduce its debt as a percentage of gross domestic product to pre-COVID levels by fiscal 2030, an advisory body to the finance minister said Tuesday, warning the government not to ease fiscal discipline in the face of inflation and Trump tariffs.

The latest policy recommendations by the Fiscal System Council, a fiscal health watchdog, came as Japanese bond market watchers were on alert over rising yields on government debt.