Japan approves record budget for 2026
The Japanese government has approved a record-breaking budget for 2026. This was reported by Zamin.uz.
The budget amounts to 122.3 trillion yen (approximately 784.6 billion US dollars). This financial plan, approved by the government led by Prime Minister Sanae Takaichi, also includes a slight increase in the issuance of new government bonds.
The volume of these bonds is expected to rise from 182.9 billion dollars to 189.4 billion dollars. At the same time, the government's debt dependency ratio will fall to 24.2%, the lowest level since 1998.
Tax revenues are forecasted to increase by 7.6%, reaching 83.7 trillion yen (536 billion US dollars). These funds will be allocated to cover social security payments and defense expenditures.
However, the rise in debt-related expenses will not be sufficient to fully cover these funds. Especially against the backdrop of the Bank of Japan abandoning its loose monetary policy, debt expenses are expected to increase by 10.8%, reaching the highest level in the past 29 years.
Prime Minister Sanae Takaichi plans to change the long-term budget planning approach. She aims to abandon the practice of balancing primary expenditures annually and to manage funds more efficiently by setting multi-year financial targets.
This approach is aimed at ensuring Japan's economic stability.
