Tokyo, 19 December, /AJMEDIA/
Japan’s state budget for the next fiscal year from April will likely hit another record of around 114 trillion yen ($834 billion) as defense spending is set to rise to its largest-ever level and social security costs continue to swell, sources familiar with the plan said Monday.
The country’s general-account budget is expected to top 100 trillion yen for the fifth straight year and hit a record for the 11th straight year, underscoring the difficulty heavily indebted Japan faces in restoring its fiscal health. The initial budget for fiscal 2022 was 107.60 trillion yen.
Japanese Prime Minister Fumio Kishida is seeking to boost defense spending to a combined 43 trillion yen over the next five years, after his Cabinet approved Friday new defense and security documents aimed at bolstering the country’s defense capabilities to tackle growing threats from China and North Korea.
The annual budget is also expected to rise as the government plans to allocate around 4.6 trillion yen as a pool of funds that can be used for defense over several years, the sources said.
The fiscal 2023 defense budget is expected to climb to around 6.8 trillion yen, from 5.4 trillion yen allocated for the current year. The figures include costs related to the realignment of U.S. forces in Japan.
Social security costs and debt-servicing costs make up about half of the country’s budget. The Cabinet is expected to approve a draft budget for the next fiscal year on Friday.
