Japan approves $785 billion budget for next fiscal year

The government of Japanese Prime Minister Sanai Takaichi approved today a record budget worth $785 billion for the next fiscal year, focusing on striking a balance between proactive fiscal policy and concerns over debt expansion by curbing the issuance of new bonds.

The total budget for the fiscal year starting in April, which will be submitted to parliament early next year and is estimated at 122.3 trillion yen, equivalent to $784.63 billion, will exceed this year’s initial budget of 115.2 trillion yen.

Issuance of new government bonds will rise only slightly from 28.6 trillion yen this year to 29.6 trillion yen, while reliance on debt is set to decline to 24.2 per cent, the lowest level since 1998.

Higher tax revenues, expected to increase by 7.6 per cent to a record 83.7 trillion yen, are anticipated to help fund increased spending, although they will not fully offset rising debt servicing costs alongside higher expenditures on social welfare and defence.

WAM