Japan launches government bond issuance for more defense spending

The Japanese government plans to issue special bonds to secure a substantial increase in defense spending with a view to raising taxes in the future to pay down debt, sources familiar with the plan said on Friday. For repayment of borrowed money, raising corporate or tobacco taxes would be among the options to ensure higher incomes, the sources said. These bonds are treated differently from others because the government decides in advance how it will repay them. Prime Minister Fumio Kishida seeks to fundamentally strengthen the country’s defense posture and strengthen the defenses…