Japan floats issuance of gov’t bonds for more defense spending

Published by
Kyodo News

The Japanese government is considering issuing special bonds to achieve a substantial increase in defense spending with an eye to hiking taxes in the future to pay back the debt, sources familiar with the plan said Friday. For the repayment of the borrowed money, raising the corporate or tobacco taxes would be among the options to ensure higher revenue, the sources said. Such bonds are treated differently from others because the government decides in advance how it will repay them. Prime Minister Fumio Kishida is seeking to fundamentally reinforce the country’s defense posture and boost defens…

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