The government plans to compile a record-high general account budget of around ¥97.45 trillion ($830 billion) for fiscal 2017 starting April, legislative sources said Monday, with social security costs accounting for roughly a third of all spending.
With the population aging rapidly, the initial budget is expected to break the record for a fifth consecutive year, following the record ¥96.72 trillion budget in fiscal 2016. Some ¥32.47 trillion will be allocated for social security, according to the sources.
The Cabinet is expected to approve the fiscal 2017 initial budget on Thursday.
Issuance of new government bonds will likely come to ¥34.37 trillion, down ¥60 billion from the initial budget for the year through March, as the government expects tax revenue to grow in fiscal 2017.
Among major outlays, defense spending will likely hit a record of ¥5.13 trillion, and public works expenditures are expected to increase to ¥5.98 trillion, the sources said.
The government also plans to boost grants to local governments by ¥290 billion to ¥15.57 trillion.