TOKYO, July 31 (Xinhua) -- The Japanese finance ministry on Monday reported a surplus of 3.48 trillion yen (about 24.5 billion U.S. dollars) in the country's special account for forex funds in the fiscal year of 2022.
Intended for specific purposes such as currency interventions, the amount registered during the fiscal period from April 2022 to March 2023 was about 641 billion yen more than the government's initial estimate.
Analysts here believe this would prompt calls for the government's plans to increase taxes to be delayed, local media reported.
While a weak yen boosted earnings from assets, yields have also increased due to aggressive interest rate hikes by major central banks like the U.S. Federal Reserve, leading to higher interest revenues for Japan.
Japanese Prime Minister Fumio Kishida has proposed plans to increase Japan's defense budget over the five years to fiscal 2027.
In order to fund the increase, the government will first carry out spending reforms and tap surplus money before raising taxes, the national news agency Kyodo quote Kishida as saying.
The government initially planned to raise taxes in fiscal 2024 or later, but the exact timing has yet to be determined.
Kishida has faced growing calls from lawmakers in his ruling Liberal Democratic Party for a delay, strengthening the view that the timing will be pushed back, Kyodo reported. (1 U.S. dollar equals 142.22 Japanese yen)
