The Finance Ministry made an initial request of ¥32.4 trillion ($219 billion) for next fiscal year’s debt financing needs, reflecting the impact from rising Japanese bond yields.

The requested amount was up around 15% from the previous fiscal year’s initial budget, according to documents seen on Tuesday. That compares with overall inflation at around 3% over the past year. If approved, the ministry’s request would be the highest amount ever budgeted for debt-servicing costs, which already account for about a quarter of Japan’s national budget.

Faced with the largest debt load among developed economies, Japan is set to continue to face major costs to maintain its debt, and keep financing an expanding pool of social security needs as its population ages. But as the Bank of Japan continues to gradually hike interest rates, the costs associated with that debt are set to keep increasing.

It also comes at a time when the government is seeking to double its spending on defense, and is under pressure to give cash handouts or lower at least part of the sales tax, after the ruling parties’ dismal result in July’s Upper House election.

Last week Japan’s 10-year yields reached the highest level since 2008, amid growing expectations of a BOJ rate hike as well as persistent fiscal concerns.

Overall, the Finance Ministry requested a budget worth ¥34.1 trillion for the year beginning in April, meaning most of the demand from the ministry itself was for debt servicing, with some additional requests for agendas including more overseas development aid.

Every summer each Japanese ministry makes an initial request for the upcoming fiscal year’s budget plan, which is eventually consolidated into the final budget. For the current fiscal year, the initial budget totaled ¥115.2 trillion.