Japan's tax revenues will hit a 24-year high this fiscal year as many companies reap record profits, allowing the government to cut new bond issuance for the year, sources familiar with the matter said on Thursday. The government will also use the proceeds to fund a supplementary budget slightly exceeding 3 trillion yen ($24.3 billion) to be announced on December 18, the sources said.
In its initial budget estimate compiled in January, the government expected tax revenues to reach 54.5 trillion yen in the current fiscal year ending in March 2016. But the government is expected to revise up the tax revenue estimate by 1.9 trillion yen to 56.4 trillion yen, taking into account a bigger-than-expected increase in corporate and income tax payments, the sources said. It will be the first time state tax revenues will exceed 56 trillion yen since fiscal 1991, when Japan was booming from an asset-price bubble, underscoring the benefits premier Shinzo Abe's stimulus policies have had on corporate profits.
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