Japan’s Finance Minister Satsuki Katayama indicated on Tuesday that the government may consider using the surplus from its $1.4 trillion foreign currency reserves as a potential funding source for planned reductions in the food sales tax. This comes amid ongoing discussions on how to finance the tax cut measures.
When asked about the possibility of tapping into the foreign exchange reserve surplus, Katayama acknowledged it as an option under consideration but did not provide specific details on the timeline or amount.
**Why this matters**
The decision to use foreign currency reserve surpluses could impact Japan’s fiscal strategy and currency management. The planned food sales tax cuts aim to ease the financial burden on consumers, making the funding approach a key issue for economic policy and public welfare.
Source: NewsData