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Japan's Budget Plan: Strategic Spending Amid Debt Concerns

12/25/2025

Summary

Story summary

Japanese Prime Minister Sanae Takaichi addressed market concerns on December 25, saying the 122.3 trillion yen draft budget aims for strategic spending with discipline.
New government bond issuance will remain capped at 29.6 trillion yen.
The budget will be finalized on December 26 for parliamentary submission in early 2026.
Private-sector advisers, including Masazumi Wakatabe, the former Bank of Japan Deputy Governor, urged a clear plan to reduce the debt-to-GDP ratio.

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Story summary

Japanese Prime Minister Sanae Takaichi addressed market concerns on December 25, saying the 122.3 trillion yen draft budget aims for strategic spending with discipline.
New government bond issuance will remain capped at 29.6 trillion yen.
The budget will be finalized on December 26 for parliamentary submission in early 2026.
Private-sector advisers, including Masazumi Wakatabe, the former Bank of Japan Deputy Governor, urged a clear plan to reduce the debt-to-GDP ratio.