The Diet on Friday enacted a record ¥106.61 trillion budget for fiscal 2021 to finance steps to mitigate the fallout from the coronavirus pandemic as well as rising social security and defense costs, once again forgoing fiscal consolidation.
The House of Councilors passed the budget for the year starting on April 1, following its approval by the House of Representatives in early March. Both houses are controlled by the ruling coalition of the Liberal Democratic Party and Komeito.
Formulating a record high initial budget for the ninth straight year means Japan, the nation with the worst fiscal health among major developed countries, is further delaying repairs to its financial position.