Japan Govt Adopts Record 114.38-T.-Yen Draft Budget for FY 2023

Tokyo, Dec. 23 (Jiji Press)--The Japanese government on Friday adopted a fiscal 2023 draft general-account budget with record spending of 114,381.2 billion yen, a rise of 6.3 pct from the initial budget for the current year.

Its regular annual budget will hit a record high for the 11th straight year and top 100 trillion yen for the first time ever.

The government aims to drastically strengthen the country's defense capabilities after Russia's invasion of Ukraine triggered changes in the security environment around Japan. With defense spending set to surge and the budget remaining debt-dependent, the government's balance sheet will worsen further.

The draft budget bill will be submitted to next year's regular session of the Diet, Japan's parliament, to be convened in January.

Noting that the budget for the year from April 2023 is for "carving out a future to prepare for a turning point in history," the government prioritizes fund allocations to areas including defense, decarbonization, measures to address the country's low birthrate and digitalization in local communities. Also, reserve funds worth 5.5 trillion yen, including general reserves, will be secured to address soaring prices and the novel coronavirus pandemic.

[Copyright The Jiji Press, Ltd.]