E-4. General Government Debt Outstanding (As Percentage of GDP)
1.Current Values
157.5% (2003)
2.Current Points (out of a perfect score of 100 by 2050)
0 points
Calculation method:
(Current value - minimum value) / (2050 target
value - minimum value) x 100
3. Explanation of Indicator
Japan is dependent upon government debt
for 40% of its revenue. The amount of debt outstanding
is conspicuously high even for an advanced nation,
and it increases year after year. If this situation
persists, future generations will only get the
debt rather than sustainably inherit the economic
abundance that the present generation enjoys;
this would do great harm to sustainability. This
scale of this issue is not one on which individual
citizens can work together to solve; it requires
debate and choices on the national level. In order
to make comparison with other countries easier
we are using a percentage of GDP as the numerical
value.
4.Target for 2050
40.0%
5.Ideal for the Future
0%
6. Rationale for Ideal and Target Values
Japan's outstanding debt, with its rapid
rate of increase, is reaching an unprecedented
magnitude. Japan must await the deliberations
of the experts as to what direction we should
be taking for the future. On the subject of national
financial matters we looked at the standard the
Maastricht Treaty set as a condition for participation
in the Euro, which was that government debt outstanding
should be under 60% of the GDP, and at the independent
standard (public debts outstanding to be under
40% of the GDP) laid down in one of Great Britain's
"Sustainability Rules" for restoring
fiscal soundness. We decided that our target for
2050 would be the "under 40% of GDP"
set by Great Britain. Also, with the perspective
that countries without any debt at all would the
soundest, we chose 0% as our ideal.
7. Source
Japanese
Ministry of Finance, International Comparison
of Debt Outstanding (as percentage of GDP)(Japanese
only)