Japan PM says won’t rule out debt issuance to fund tax cut

By Leika Kihara TOKYO, Oct 19 (Reuters) Japanese Prime Minister Sanae Takaichi said on Monday she ​would not rule out the ‌chance of issuing bonds to fund a two-year cut to the country s consumption tax scheduled from April next year. The ‌government ​will seek to ⁠stably lower the ⁠ratio of debt balance to gross domestic product (GDP) by reviewing both spending and expenditure, Takaichi told parliament. As ​we do this, we will appropriately control the size of ⁠annual bond issuance, ⁠she said. We would not ​rule out the chance of issuing ​bonds altogether, Takaichi said, highlighting how ‌the government could raise proceeds to fund the scheduled sales tax cut. Takaichi also said Japan can ⁠heighten market trust in the yen by pursuing steps to strengthen the economy. The government ⁠has ‌laid out a plan ⁠to cut an 8% ​levy ‌on food items from April ​next year, ⁠as part of efforts to cushion the blow to households from rising living costs. (Reporting by Leika Kihara; Editing by Cl