The government of Japanese Prime Minister Sanae Takayashi plans to unveil a record initial budget for the fiscal year starting in April, increasing spending at a faster pace than inflation. Takayashi announced today that the budget for the year starting April 2026 will total about 122.3 trillion yen ($786 billion), according to Bloomberg News. This represents an increase of about 6.3% from the 115.2 trillion yen allocated for the current fiscal year, marking the largest initial budget on record. Takayashi added that the government intends to raise about 29.6 trillion yen through the issuance of new government bonds to help finance the spending. She noted that the budget's reliance on bond issuance will decrease to 24.2% from 24.9% for the current year. At the end of a meeting with the ruling parties and government members, the Prime Minister said, "I believe this budget balances boosting the economy with ensuring financial sustainability."
