This file photo taken in 2010 shows a sample of Japanese government bonds. (Mainichi)

       TOKYO (Kyodo) -- The Japanese government's issuance of new bonds under its initial budget for fiscal 2022 will fall sharply from 43.60 trillion yen ($382 billion) in the current fiscal year as it expects to have record tax revenue on the back of economic recovery from the coronavirus pandemic, sources close to the matter said Thursday.

       For the new fiscal year starting in April, the government plans to issue more than 30 trillion yen worth of bonds and estimates it will see around 65 trillion yen in tax revenue, according to the sources.

       Despite the first planned shrinkage in two years, Japan's heavy reliance on the debt to cover increasing social welfare and defense spending remains unchanged. The government is slated to decide on a draft budget for the next fiscal year on Dec. 24, while the exact amount of bond issuance is still unclear.

       Depending on the situation, the government could reduce the issuance of bonds to around 35 trillion yen, the sources said.

       Since the spread of the coronavirus, the amount of newly issued bonds has been increasing so as to finance a series of health and economic measures. The debt issuance in fiscal 2020 eventually ballooned to more than 108 trillion yen, an all-time high, from the initially budgeted 32.56 trillion yen.

       In fiscal 2022, the government plans to set its general-account expenditures at 107.5 trillion yen, a record for the 10th consecutive year.

       In addition to new bonds and tax revenue, the budget outlays will be financed by non-tax revenue, including payments from the Bank of Japan.

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