Japan faces sharp rise in debt issuance as financing costs climb
Japan expects bond issuance to jump 28 percent by 2029 as rising interest rates strain the budget. This surge complicates the government's plans for tax cuts.
Japan 
JP's finance ministry announced on February 17, 2026, that annual government bond issuance is estimated to rise to as much as 38 trillion yen by fiscal 2029. This figure represents a 28% increase from the 29.6 trillion yen projected for fiscal 2026. The ministry indicated that this rise is necessary because government expenditure is expected to exceed tax revenues over the coming years, necessitating a greater reliance on borrowing to cover the shortfall.
JP's finance ministry announced on February 17, 2026, that annual government bond issuance is estimated to rise to as much as 38 trillion yen by fiscal 2029. This figure represents a 28% increase from the 29.6 trillion yen projected for fiscal 2026. The ministry indicated that this rise is necessary because government expenditure is expected to exceed tax revenues over the coming years, necessitating a greater reliance on borrowing to cover the shortfall.
