Japan 2024 Budget Requests Hit Record $780-B

Budget requests by Japanese government offices for the next fiscal year likely hit a record of around 114 trillion yen ($780 billion), a Kyodo News tally showed, as increased debt-servicing costs added to the uptick in defense and social security spending.

The Finance Ministry will screen the requests before drafting the budget in December. I Photo: Rs1421 Wikimedia Commons

The general account budget for fiscal 2024, starting next April, could surpass the 114.38 trillion yen allocated for the current year. The Finance Ministry will screen the requests before drafting the budget in December.

Ministries and agencies had to submit their requests to the ministry by Thursday.

While the exact size of spending on priority areas has yet to be determined by the administration of Prime Minister Fumio Kishida, some requests were submitted without specifying amounts.

It is the first time in two years that the total size of requested spending has hit a record.

Previously, the 111.66 trillion yen sought for fiscal 2022 was the largest. Despite its goal of reining in spending that has swelled in recent years amid the COVID-19 pandemic and a cost-of-living crisis, the government faces a high hurdle in achieving a shift away from crisis-mode stimulus and reducing its heavy reliance on debt.

A substantial portion of this increased expenditure needs financing through the issuance of government bonds despite Japan's fiscal health already being the worst among developed nations.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic