Japan FY 2025 Budget Requests Seen Hitting New Record High

Tokyo, Aug. 30 (Jiji Press)--General-account budget requests for fiscal 2025 submitted by Japanese government ministries and agencies by Friday's deadline are expected to total around 117 trillion yen, hitting a record high for the second consecutive year.

The expected total exceeds the current record of 114,385.2 billion yen, requested for fiscal 2024.

The increase reflects the rising cost of paying interest on Japanese government bonds, or JGBs, as well as a surge in defense spending in light of the increased security threats in East Asia.

The requests seek many funds for measures to tackle inflation, promote wage increases, deal with the country's declining birthrate and boost defense capabilities.

"We will strictly examine (the budget requests) to avoid loosening fiscal discipline and prevent a one-sided budget increase," Finance Minister Shunichi Suzuki told a press conference Friday.

[Copyright The Jiji Press, Ltd.]