Japan Sets Bond Issuance Target at 40 Trillion Yen for Fiscal Year 2027

Japan's government plans to keep new bond issuance at around 40 trillion yen ($251 billion) for fiscal year 2027, according to Prime Minister Sanae Takaichi.

The comment came as Japan's budget requests from government ministries and agencies for the next fiscal year are expected to exceed 130 trillion yen, setting a record for a fourth consecutive year.

Takaichi cited the case of the fiscal 2025 budget, where tax revenues partially offset an extraordinary budget, allowing new bond issuance to remain below the previous year's level at about 40 trillion yen.

The government plans to incorporate supplementary budgets into the initial budget, which could inflate headline expenditure.