Jan. 24 (Bloomberg) -- Japan will probably miss its goal of balancing the budget by fiscal 2020 even if it doubles the nation’s sales tax, government estimates show.
Japan will have a primary deficit of 3.1 percent of gross domestic product in the year, the Cabinet Office said in a report released in Tokyo today. The projections are made based on assumption that the world’s third-largest economy will grow about 1 percent annually. The government had wanted to achieve a primary balance, which is achieved when revenue matches spending, excluding bond sales and interest payments, by the year ending March 2021.
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