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IMF raises alarm over Japan's massive pandemic spending

Extra budgets to aid coronavirus-battered economy push debt to 259% of GDP

Japan has compiled multiple supplementary budgets to support a pandemic-battered economy.    © Reuters

TOKYO -- Japan's policy response to the pandemic has been "exceptionally strong," the International Monetary Fund said on Friday, but warned against its repeated use of supplementary budgets that has led to a major spike in spending. 

"Sizable supplementary budgets have been frequently assembled, leading to upward revisions of expenditures from the initial budgets," the IMF said in a statement after its review, urging Japan to restore "predictability" in the size of spending. 

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