Official announcements from the Japanese government or major news outlets

Japan Approves Record ¥115.54 Trillion Budget for FY 2025, Including ¥8.7 Trillion Defense Budget and ¥78.44 Trillion Tax Revenue

Dec 27, 2024, 01:40 AM

Japan's cabinet has approved a record budget of 115.54 trillion yen (approximately $732 billion) for the fiscal year 2025, surpassing the previous year's budget of 114.38 trillion yen. This budget is primarily aimed at addressing the needs of an aging population and enhancing national defense capabilities. Notably, the defense budget has been set at 8.7 trillion yen ($55 billion), marking the 13th consecutive increase in defense spending. The budget proposal is scheduled for final approval by parliament, where the government is expected to face challenges in securing its passage. Additionally, the government plans to issue approximately 28.65 trillion yen in bonds to cover a quarter of the budget, reflecting a decrease in new bond issuance for the first time in 17 years. The budget also anticipates a record tax revenue of around 78.44 trillion yen, driven by increases in income, corporate, and consumption taxes amid rising prices.