Japan Kan: tax hike unavoidable at some point

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TASHKENT, May 2 (BestGrowthStock) – Japanese Finance Minister Naoto
Kan said on Sunday the country would eventually need to
consider a tax hike as the government’s ability to issue more
bonds was near the limit due to its huge public debt.

As Japan’s public debt grow close to twice the size of the
economy, the government is resisting pressure to spend more
after enacting a record $1 trillion yen budget for the year
from April 1 with an all-time high of 44.3 trillion yen ($472.2
billion) in new bond issuance.

But Kan also told his Chinese and South Korean counterparts
that it was too early for Japan to start cutting its fiscal
spending, a Japanese government official with access to the
meeting said, as the world’s second biggest economy remains
fragile.

The three ministers met on the sidelines of the Asian
Development Bank’s annual meeting in this capital city of
Uzbekistan.

Stock Market Basics
($1=93.81 Yen)
(Reporting by Rie Ishiguro)

Japan Kan: tax hike unavoidable at some point