The Strategist

Japan's domestic debt hits all-time high

05/11/2022 - 10:23

Japan's domestic debt has exceeded 1,000 trillion yen for the first time.

Japan's domestic debt, the so-called "long-term debt" that will need to be repaid from taxes collected, has exceeded 1,000 trillion yen (about $7.69 trillion at today's exchange rate) for the first time in history, Kyodo news agency reported, referring to the finance ministry’s data.

The debt stood at 1,017 trillion yen ($7.82 trillion) at the end of the previous fiscal year (April 1, 2021 to March 31, 2021). The increase in long-term liabilities of states has been going on for 18 years, but this is the first time the amount has exceeded 1,000 trillion.

Together with investment debts and short-term loans, which normally go towards filling current budget shortfalls, are added to these debt obligations, Japan's total domestic public debt stands at 1,241 trillion ($9.55 trillion).