According to a report on the Nikkei, the Japanese government is likely to earn lesser tax revenue than previously estimated this fiscal year. The government’s initial forecast pegged this current fiscal’s tax revenue at around 2.3-2.5 trillion yen.

The decline in tax revenues will be mainly driven by a reduction in exports on account of the prolonged US-China trade war. The Nikkei also reports that the government could issue more bonds to cover this deficit in tax revenues valued close to 2 trillion yen.

According to the original estimates, the Japanese government had anticipated earning around 62.5 trillion yen worth of tax revenue, a record high figure. However, any deficit in this estimate could make it more challenging for Japan to achieve its targets towards balancing its budget by the fiscal year ending in 2026.