FY 2008 tax revenues far short of projection, may boost debt issuance

TOKYO, Dec. 7 Kyodo - Japan's tax revenues in fiscal 2008 are likely to remain far short of the government's projected level due to rapidly deteriorating business performance, and could possibly force the government to issue more debt, government sources said Sunday.
Tax revenue for the year through next March would come to around 47 trillion
yen, compared with the government's estimate of 53.6 trillion yen, due mainly
to a decline in corporate tax.
The government originally planned to issue about 25.3 trillion yen worth of
debt. But to make up the revenue shortfall, it may have to increase the debt
issuance amount to around 33 trillion yen, they said.
It would be the first time in three years that the government issues debts in
an amount exceeding 30 trillion yen.
The government will include the downwardly revised tax revenue estimate and the
inflated debt issuance plan in its second supplementary budget to be submitted
to the Diet in January, they said.
Debt issuance is likely to exceed 30 trillion yen in the initial budget for
fiscal 2009, the first time in four years in terms of initial budget for a
year, as the current economic downturn is likely to be protracted, further
dragging down tax revenues for the government, they added.
==Kyodo