Japan's Budget Requests Hit Record High Above 130 Trillion Yen

The Japanese government's budget requests for fiscal 2027 have surpassed 130 trillion yen for the first time, exceeding last year's total of 122 trillion yen. This marks a record high for the fourth consecutive year, driven by the introduction of a new growth-investment category with no spending cap and rising interest payments on government bonds.

The Finance Ministry has compiled the total budget requests, which are expected to reach more than 130 trillion yen by April 2027. Prime Minister Takaichi Sanae defines this budget as the 'first year of responsible proactive fiscal policy,' calling for a fundamental review of how the budget is structured.

The Defense Ministry has requested a record high of about 8.9 trillion yen, including funding for interceptor drones. The Ministry of Economy, Trade and Industry requested 7.7 trillion yen, with 4.5 trillion yen allocated to investment in AI and semiconductor development.