
Iwamoto Yasushi, Professor, University of Tokyo Key points Correct inconsistencies between targets and predictions for better fiscal soundness Difficulties to compile budget by end of 2021 as planned Initial budget reduction followed by revisions every quarter The Emergency Economic Measures for Response to COVID-19, which was formulated in April, includes two stages: an “Emergency Support Phase” until the COVID-19 situation is resolved and a “V-shaped Recovery Phase” after it has been resolved. Supplementary budgets of unprecedented scale was put together to realize this, so much that the state’s general account expenditure included large-scale public spending corresponding to about 1.5 times the FY2019 figures. The “Basic Policy on Economic and Fiscal Management and Reform 2020,” created in preparation for the FY2021 budget compilation, and the “Economic and Fiscal Projections for Medium to Long Term Analysis,” which showed economic and public finance projections until ... ... [Read more]