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Japan's 2026 Budget Surges to 120 Trillion Yen

12/17/2025

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Story summary
  • The draft budget for fiscal 2026 is projected to exceed 120 trillion yen, up from 115.2 trillion yen in fiscal 2025.
  • The government plans to issue 11.7 trillion yen in new bonds to finance more than 60% of the budget.
  • Prime Minister Sanae Takaichi's administration aims to raise defense spending to 2% of GDP by fiscal 2025.
  • The budget includes household relief measures and investments to support economic growth.