The Japanese government has updated its estimate of the country’s tax revenues for the latest fiscal year ending in March. The weakening yen and the economic recovery from the pandemic are boosting the profits of major companies.
Tax revenues for fiscal year 2021 are expected to reach 67.0 trillion yen ($496.15 billion), a record high for the second year in a row. The three main tax revenues come from sales tax, corporate income tax and personal income tax
Higher-than-expected tax revenues often prompt lawmakers to call for more spending to support a fragile economic recovery. This is likely to result in more unspent budgetary resources.
The Budget Act provides that half of the remaining budget appropriations from the previous fiscal year may be used for supplemental appropriations that may be collected later in the current fiscal year.