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What will be Japan's FY 2025 budget deficit as a percentage of GDP by March 31, 2026?
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Japanese Ministry of Finance reports or official government economic reports
Story
Japan Approves Record 115.54 Trillion Yen Budget for FY 2025 with 8.7 Trillion Yen Defense Spending and 78.44 Trillion Yen Tax Revenue
Dec 27, 2024, 01:12 AM
Japan's cabinet has approved a record budget of 115.54 trillion yen (approximately $732 billion) for the fiscal year 2025, marking the largest budget in the country's history. This budget reflects increased spending on social welfare and defense, with defense expenditures set to reach 8.7 trillion yen ($55.4 billion), the highest ever allocated for this purpose. The government plans to issue 28.65 trillion yen in new bonds to finance the budget, a reduction from the previously planned 35.4 trillion yen for the current fiscal year. Tax revenues are projected to hit a record 78.44 trillion yen, which will cover about 25% of the total budget, indicating a reliance on debt to address funding gaps. The budget proposal is a critical test for Prime Minister Shigeru Ishiba's minority government as it seeks parliamentary approval.
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