Tokyo, July 30 (QNA) - The Japanese government Thursday lowered its economic growth forecast for the current fiscal year, which began in April, to 0.9%, down from a previous estimate of 1.3%, as rising crude oil prices weigh on the heavily import-dependent economy.

The Cabinet Office said ​the primary budget ​balance is projected ⁠to return to a 1.4 trillion yen ($8.6 billion) surplus in fiscal 2027, driven by increased tax revenues, compared to a previous estimate of a 2.1 trillion yen deficit, according to Kyodo News Agency.

Despite the improved fiscal outlook, markets remain wary of Prime Minister Sanae Takaichi's plans to increase spending to boost growth, amid concerns that such policies could exacerbate the country's public debt burden.

The Cabinet Office also projected that the primary deficit will widen to 1.2 trillion yen in fiscal year 2026, up from a previous estimate of 800 billion yen, due to the need for supplementary budget funding. For the fiscal year beginning next April, the government projected GDP growth of 1.1%, supported by plans to increase investments in crisis management and strategic growth sectors, which will stimulate consumption and boost capital investments. (QNA)