The Japanese government plans to announce a record-breaking budget of over 120 trillion yen for the 2026 fiscal year

Led by Prime Minister Sanae Takaichi, the government plans to release a preliminary record budget for the new fiscal year starting in April, with expenditure growth exceeding the inflation rate. Takaichi said on Thursday that the total budget for the fiscal year starting in April 2026 will be approximately 122.3 trillion yen (about $78.6 billion).
This is an increase of about 6.3% from the 115.2 trillion yen allocated in the current fiscal year, making it the largest initial budget on record. Takaichi stated that to help raise funds, the government plans to issue approximately 29.6 trillion yen in new government bonds. She also mentioned that the budget's reliance on debt issuance will decrease from 24.9% this year to 24.2%.
Takaichi said, “I believe this budget strikes a balance between strengthening the economy and ensuring fiscal sustainability.” In addition to new bond issuance, tax revenue will be a key source of funding for the budget, with projected tax revenue of about 83.7 trillion yen next year.