Japan Approves Record $785 Billion Budget, Addresses Debt Concerns

Japan's cabinet has approved a record 122.3 trillion yen ($785 billion) draft budget for the upcoming fiscal year, the largest ever. The government, under Prime Minister Sanae Takaichi, aims to balance expansionary spending with efforts to control the nation's significant debt.

• Japan's cabinet approved a record $785 billion budget for fiscal year 2026.
• The budget, totaling 122.3 trillion yen, is the largest ever approved.
• Prime Minister Sanae Takaichi's administration vows to limit new bond issuance.
• Debt dependence ratio is projected to fall to 24.2%, lowest since 1998.
• Higher tax revenues are expected to partially offset rising debt-servicing costs.
• Focus areas include social welfare, defense, and economic stimulus measures.

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