Economics
Japan Approves Record $1 Trillion Budget for Next Year
- Planned new bond issuance rises to 43.6 trillion yen
- Debt reliance rate rises to 40.9% of the budget income
Photographer: Tomohiro Ohsumi/Bloomberg
This article is for subscribers only.
Japan’s cabinet approved a record budget next fiscal year that tops $1 trillion and adds to the developed world’s heaviest debt burden as Prime Minister Yoshihide Suga struggles to fight the coronavirus and bolster an economic recovery.
Japan’s fiscal 2021 budget calls for 106.6 trillion yen in overall spending during the 12 months starting in April, a 3.8% increase from last year’s initial budget, the finance ministry confirmed Monday. Actual spending could rise much higher, given the likelihood of extra budgets, three of which were drafted this year amid the pandemic, adding 73 trillion yen to total spending.