The Japanese government is poised to approve a historic initial budget for the fiscal year starting in April 2025, amounting to approximately ¥115.5 trillion ($735 billion). This budget reflects a significant increase in spending aimed at enhancing national defense and bolstering regional economies.
According to a draft plan obtained by Bloomberg, the government will continue to rely heavily on debt issuance to finance the spending, although it anticipates a reduction in new bond issuance by nearly 20%, bringing it down to ¥28.6 trillion. This adjustment is made possible by record tax receipts expected during this fiscal period.