Japan's frightening specter of debt

Public debt in Japan, which is increasing at rapidly, can be controlled by decreasing public expenditure and increasing revenues. The combined total of the visible and invisible debt of the country is about 300 trillion yen. Japan used 16.4% of the budget for debt servicing in 1995. During FY1996, the government will earn about 54 trillion yen, leaving nearly 21 trillion yen in fiscal deficit. Increased expenditure in public works over the years and cuts in tax rates are the cause of the mounting debt problem.