The Cabinet on Monday approved a record-high ¥106.61 trillion ($1.03 trillion) draft budget for fiscal 2021 as the country grapples with the coronavirus pandemic, its rapidly graying society and new security challenges.
Marking a record high for the ninth consecutive year and topping ¥100 trillion for the third year in a row, the budget for the year starting in April will far exceed fiscal 2020's initial budget of ¥102.66 trillion, raising concern over a further deterioration of the country's fiscal health, already the worst among major economies.
To finance the budget, new bond issuances will soar ¥11.04 trillion from the current year's initial plan to ¥43.60 trillion, the first year-on-year rise in 11 years on an initial basis.