Fiscal Terms

1. Today's Japanese words

 ## Japanese Vocabulary for Fiscal Terms (Romaji):

**General:**

* **財政 (zaisei):** fiscal, finance

* **予算 (yosan):** budget

* **赤字 (akaji):** deficit

* **黒字 (kuroji):** surplus

* **債務 (saimu):** debt

* **支出 (shishutsu):** expenditure

* **収入 (shūnyū):** revenue

* **税金 (zeikin):** tax

* **経済成長 (keizai seichō):** economic growth

**Specific:**

* **国債 (kokusai):** national debt

* **社会保障 (shakai hoshō):** social security

* **歳入超過 (zaishinyū kachō):** budget surplus

* **歳出超過 (zaishutsu kachō):** budget deficit

* **緊縮財政 (kinshuku zaisei):** fiscal austerity

* **財政再建 (zaisei saiken):** fiscal reconstruction

* **消費税 (shōhizei):** consumption tax

2. Today's topic

## Japan's Fiscal Balance: An Explanation

Japan's fiscal balance refers to the difference between its government's **revenue** (taxes and other income) and its **expenditure** (spending on social programs, infrastructure, etc.). Unfortunately, Japan has been running a **fiscal deficit** for several years, meaning it spends more than it takes in. 

Here's a breakdown of the situation:

**Current Status:**

* **Deficit:** As of 2021, Japan's fiscal deficit stood at **-6.2% of its GDP (Gross Domestic Product)**. This is higher than the average deficit for major economies (-4.6%).

* **Causes:** Several factors contribute to the deficit, including:

    * **Aging population:** As Japan's population ages, there are more retirees requiring social security and healthcare, increasing government spending.

    * **Economic stagnation:** Slow economic growth means lower tax revenue for the government.

    * **Pandemic impact:** The COVID-19 pandemic further increased government spending on stimulus measures.

**Future Outlook:**

* **Forecasts:** The deficit is expected to gradually decrease in the coming years, but it will likely remain significant.

* **Challenges:** Achieving fiscal balance requires difficult decisions, such as:

    * **Raising taxes:** This could be unpopular but could increase revenue.

    * **Cutting spending:** This is politically sensitive, especially regarding social programs.

    * **Economic growth:** Boosting economic growth would naturally increase tax revenue.

**Important Points:**

* Japan's high debt-to-GDP ratio (over 200%) is a concern, but its manageable interest rates lessen the immediate risk.

* The government is implementing measures to address the deficit, but finding a sustainable solution remains challenging.

3- Today’s news

Japan says it pauses funding to UNRWA, ‘extremely concerned’ about allegations

https://www.asahi.com/sp/ajw/articles/15136058

U.N. officials have urged countries, including top donors the U.S. and Germany, to reconsider their funding pauses for UNRWA. Japan is the sixth biggest donor to the agency, according to the UNRWA’s 2022 data.

Japan's debt hit record 702 trillion yen in FY2022

https://www3.nhk.or.jp/nhkworld/en/news/20240129_16/

For fiscal 2022, the government's budget deficit was over 32 trillion yen, or about 217 billion dollars. That's an improvement of about 20 percent in yen terms from the previous fiscal year. But it's still above pre-pandemic levels.