The Ministry of Finance has announced that the ``national burden ratio'', which indicates the ratio of taxes and social insurance premiums to the national income, is expected to be 47.5% this fiscal year (FY2022).
Although it is slightly below last year's record high, it accounts for nearly half of the national income.
The national burden ratio is the ratio of taxes and social insurance premiums to the total national income, including individual and corporate income. .
The Ministry of Finance announced on the 21st that this year's "national burden rate" is expected to be 47.5%.
While the burden of social insurance premiums has increased as the population ages, corporate performance has recovered and employee compensation has increased, resulting in a 0.6 point drop from last year's record high.
However, it is the third highest level on record, accounting for nearly half of the national income.
In addition, the "national burden rate" for the new fiscal year is expected to decrease by 0.7 points from this fiscal year to 46.8%, as income is expected to increase.
On the other hand, the "potential national burden ratio", which includes the national budget deficit, is expected to rise by 3.7 points from the previous fiscal year to 61.1% this fiscal year, due to the expansion of expenditures due to the large-scale supplementary budget formulated in November last year. .
Japan's national burden rate was 35% in 2002, 20 years ago, but has exceeded 40% since 2013 due to an increase in the burden of social insurance premiums due to the aging population.