Japan Govt Adopts Record 122-T.-Yen Draft Budget for FY 2026

Tokyo, Dec. 26 (Jiji Press)--The Japanese government adopted at a cabinet meeting Friday a draft fiscal 2026 budget featuring record-high general-account spending of 122,309.2 billion yen.

The expenditures, larger than the 115,197.8 billion yen under the fiscal 2025 initial budget, will hit an all-time high for the second consecutive year.

The draft budget for the year starting in April 2026 includes measures to deal with inflation as the administration of Prime Minister Sanae Takaichi, who took office in October, aims to promote "responsible and proactive" public finances.

Social security spending is set to hit a record high partly because of inflation. Debt-servicing spending will top 30 trillion yen for the first time, due to rises in interest rates reflecting the Bank of Japan's moves to end massive monetary easing and promote policy normalization.

It will be the first initial state budget to be compiled under Takaichi. The government plans to submit the draft budget to next year's ordinary session of the Diet, Japan's parliament, to be convened in January, aiming to secure its enactment before the current fiscal year ends on March 31.

[Copyright The Jiji Press, Ltd.]