Japan’s initial draft budget has hit a record high for the 10th consecutive year, with the government on Friday approving a ¥107.6 trillion ($940 billion) proposal for fiscal 2022, which begins in April.
With the Japanese population rapidly aging, the country’s social security costs will increase by ¥440 billion to reach ¥36 trillion for the first time, while the defense budget will also be a record amount for the eighth straight year, coming in at ¥5.4 trillion compared with ¥5.34 trillion this fiscal year.
The bond dependency ratio is estimated to be 34.3%, as the government plans to issue new bonds worth ¥36.9 trillion to finance the massive budget. Debt servicing costs will be ¥24.3 trillion.