The long-term path that the government decided upon-within the framework of the legislation that determines the maximum real increase in government expenditure (1 percent a year) and the budget deficit (up to 3 percent of GDP)-serves, together with the privatization policy, as bellwether to the required fiscal policy.
Japan's economy also has been in an increasingly severe situation due to the impact of the spread of COVID-19 at home and abroad, and for the time being, that is likely to remain the case.