Japan’s record budget of $786 billion for 2026

Japanese Prime Minister Sanae Takaishi’s government plans to unveil a record preliminary budget for the fiscal year starting in April, increasing expenditures faster than inflation.
Takaishi said today that the budget for the year starting in April 2026 will total about 122.3 trillion yen ($786 billion), according to Bloomberg News Agency.
This represents an increase of about 6.3 percent from the 115.2 trillion yen allocated for the current fiscal year, representing the largest initial budget on record.
Takaishi added that the government intends to raise about 29.6 trillion yen by issuing new government bonds to help finance spending.
She added that the budget’s dependence on debt issuance will decrease to 24.2%, down from 24.9% for the current year.
The Prime Minister said at the end of a meeting with the ruling parties and members of the government, “I believe that this budget balances strengthening the economy and ensuring financial sustainability.”