Diet allotted 82.9 trillion yen in the
Japan budget 2007. Japan has one general budget and 32 special budgets. The General budget of Japan is the main budget, which contains information about expenses of the government for various programs undertaken for the public. This includes accounting of expenses and profits pertaining to social services, education, science, public works and various other issues. The special account budgets are related to certain special programs. The special account budgets are different from that of the general budget.
Japan has set 2011 as the target for balancing the national budget. This may seem to be good news and may indicate that this will settle the national debt of 767 trillion yen or USD$6.55 trillion. It is assumed that deficit in Japan budget 2007 is likely to drop to 4.4 trillion yen or USD$37 billion. It was 11.2 trillion yen or USD$94.5 billion in the year 2006. It has been successful in bringing down the debt considerably in a years' time.
It was reckoned by the government in Japan that by the end of March 2007, the country would have as much as USD$6.55 trillion as debt.
Change in demography:
The population of Japan is anticipated to decrease by approximately 25% by the year 2050. This means that around 40% of the population will consists of elderly people. This will mean that retirement benefits have to be provided to all of them. So, the budget gets strained in the process. It has been estimated in the Japan Budget 2007, that the growth in gross domestic product or the GDP will be 2% in the current year(2007). This figure is likely to decline slightly in the year 2008. During the period 2007-2008, surplus in current account will be more or less static at 4% of the gross domestic product.