Japan seeks to extend provision aiding sale of deficit-financing bonds
Reuters: 24 December 2015
Dec 24 Japanese Finance Minister Taro Aso said the government plans to extend a temporary provision that permits issuance of deficit-financing bonds without parliamentary approval for another five years, through the end of fiscal 2020.
Deficit-financing bonds are seen as a barometer of fiscal discipline because they are issued to fill budget gaps.
In principle, Japan's fiscal law prohibits issuance of deficit-financing bonds, which are limited to special legislation that must be enacted by parliament when it passes each fiscal year's budgets.
But under a temporary provision agreed on by the ruling and main opposition parties in 2012, deficit-financing bills have been allowed to be issued without special legislation. The provision is due to end in March.
"While consulting with ruling parties, we will send legislation (to allow the extension) to the regular parliament session" to be convened in January, Aso told reporters on Thursday.
The move would secure smooth issuance of deficit-financing bills even if there's a political stand-off, but it could raise concern that a lack of parliament supervision may loosen fiscal discipline.
Deficit-financing bonds are estimated to account for 28.38 trillion yen ($235.26 billion) of all new borrowing next fiscal year, while construction bonds take up the remaining 6.05 trillion yen.
($1 = 120.6300 yen) (Reporting by Tetsushi Kajimoto; Editing by Richard Borsuk)
http://www.reuters.com/article/japan-economy-bonds-idUSL3N14D1YU20151224?feedType=RSS&feedName=bondsNews
Reuters: 24 December 2015
Dec 24 Japanese Finance Minister Taro Aso said the government plans to extend a temporary provision that permits issuance of deficit-financing bonds without parliamentary approval for another five years, through the end of fiscal 2020.
Deficit-financing bonds are seen as a barometer of fiscal discipline because they are issued to fill budget gaps.
In principle, Japan's fiscal law prohibits issuance of deficit-financing bonds, which are limited to special legislation that must be enacted by parliament when it passes each fiscal year's budgets.
But under a temporary provision agreed on by the ruling and main opposition parties in 2012, deficit-financing bills have been allowed to be issued without special legislation. The provision is due to end in March.
"While consulting with ruling parties, we will send legislation (to allow the extension) to the regular parliament session" to be convened in January, Aso told reporters on Thursday.
The move would secure smooth issuance of deficit-financing bills even if there's a political stand-off, but it could raise concern that a lack of parliament supervision may loosen fiscal discipline.
Deficit-financing bonds are estimated to account for 28.38 trillion yen ($235.26 billion) of all new borrowing next fiscal year, while construction bonds take up the remaining 6.05 trillion yen.
($1 = 120.6300 yen) (Reporting by Tetsushi Kajimoto; Editing by Richard Borsuk)
http://www.reuters.com/article/japan-economy-bonds-idUSL3N14D1YU20151224?feedType=RSS&feedName=bondsNews
No comments:
Post a Comment