Takeya: Pare costs of maintaining special state funds
April 15 , 2025
At a House of Councillors Budget Committee meeting held on April 14, Komeito Deputy Chief Representative Toshiko Takeya urged the government to reduce the cost of interest on government bonds when establishing special state funds.Takeya pointed out that the total amount of such funds, which are set up to address specific causes, reached ¥18.8 trillion at the end of fiscal 2023. When operated over several fiscal years, for instance, periodic interest on the interest-bearing government bond issued for a ¥1 trillion fund stood at 0.77% as of 2023, resulting in a payment of ¥7.7 billion to bondholders. She said the less government bonds are used to set up a fund, the less interest needed to be paid out.
Finance Minister Katsunobu Kato agreed that it was vital to ensure such funds are not allowed to exist over too long and that they should be subject to closer scrutiny as budgets are being compiled going forward.
