Note 3-4
- Japanese version
- English version
4 Permanent and other tax cuts under tax reforms are included in the structural deficit. For example, national and local direct tax revenues declined by some 1% of GDP from FY 1993 to 1994 due mainly to tax cuts. The cyclical deficit swelled by only 0.1% of GDP. In FY 1999 when permanent tax cuts were implemented, the cyclical deficit decreased instead of swelling.