The Cabinet approved budget compilation guidelines for fiscal 2022 on Wednesday, setting aside around ¥4.4 trillion ($40 billion) to promote key policies such as decarbonization under Prime Minister Yoshihide Suga's green growth strategy.
The total amount of the budget requests is expected to surpass ¥100 trillion for the eighth consecutive year following the ¥106.61 trillion initial budget for fiscal 2021, with no spending cap on requests again to respond to the pandemic, government sources said.
"We will give priority to areas that could be new driving forces of the economic growth when compiling the budget," Finance Minister Taro Aso told reporters.