Japan to review fiscal health goal with calls for more public spending.
The Japanese government is set to re-examine its goal of achieving fiscal consolidation in fiscal 2025 due to growing calls within the ruling Liberal Democratic Party to boost public spending to prop up the economic recovery, which is now threatened by rising raw material prices, senior LDP members said.
Such a review will be stipulated in the government's annual fiscal and economic policy guideline for the second consecutive year, possibly delaying the restoration of Japan's fiscal health, which is already the worst among major developed countries due to increasing social security costs amid the rapid aging of the population.
