Japan sees 45 trln yen revenue shortfall in 2015/16-source

TOKYO Jan 27 (Reuters) - Japan's Ministry of Finance estimates a revenue shortfall of 45.4 trillion yen ($587 billion) in the budget for fiscal 2015/16 even after the government implements sales tax hikes, a source with knowledge of the matter said on Friday.

The government would thus likely need to increase its new bond issuance to fill the budget hole from the current self-imposed ceiling of 44 trillion yen.

The government plans to raise the 5 percent sales tax to 8 percent in April 2014 and then to 10 percent in October 2015, but the passage of tax hike bills is uncertain as Prime Minister Yoshihiko Noda faces slumping public support ratings and hostile opposition parties that control parliament's upper house.