Japan eyes record 120 trillion yen budget for 2026
Japan is considering an initial budget exceeding 120 trillion yen ($775 billion) for fiscal 2026, which would be the largest in the nation’s history. The plan reflects Prime Minister Sanae Takaichi’s push for aggressive fiscal spending to support an economy strained by persistent inflation.
If approved, the budget would surpass the 115.2 trillion yen record set in 2025. Rising personnel and fixed costs, alongside debt-servicing obligations exceeding 28 trillion yen, are key factors, News.Az reports, citing foreign media.
Earlier this week, Japan passed an 18.3 trillion yen supplementary budget for 2025 to ease living costs, fund household support, and boost investment-led growth. Measures include energy subsidies, cash payments to families, and additional local government aid.
The government also allocated 1.7 trillion yen for security and diplomatic spending, helping reach a 2% of GDP defense spending target ahead of schedule. Critics warn that nonessential spending should be part of the 2026 budget rather than the supplementary package.
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