When Summers was the US Deputy Secretary of the Treasury, he told the Japanese government not to raise the consumption tax rate from 3% to 5%.  But the government ignored his warnings, and raised the tax in 1997 for the purpose of balancing its budget. Although the country recorded a GDP growth rate of 3 percent in 1996, the economy sank into recession in 1998.  On top of that, the revenue of the government decreased by trillion yen in 1998 mainly because Japan's domestic consumption stumbled. Graph A shows the revenue of the Japanese government during 1994-2006.  The tax revenue reached a peak of 53 trillion yen in FY 1997, and declined in subsequent years, being still 42 trillion yen  (537 billion USD) in 2012.