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Japan must avoid issuing debt to fund fresh spending, IMF says

BY Reuters | ECONOMIC | 10/31/24 09:38 PM EDT

By Leika Kihara

TOKYO, Nov 1 (Reuters) - Japan must fund any additional spending plans within its budget rather than issuing more debt, the International Monetary Fund said on Friday, urging the government to get its fiscal house in order as the central bank starts to raise interest rates.

"Given the fact that monetary policy normalisation is happening, it puts the onus on the fiscal side to actually embark on consolidation, which is, in my opinion, long overdue," Krishna Srinivasan, director of the IMF's Asia Pacific Department, told Reuters in an interview.

(Reporting by Leika Kihara; Editing by Tom Hogue)

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