Japan unveiled on Friday a record ¥114.4 trillion ($863 billion) budget for the next fiscal year from April, pushed up by increased military spending and higher social security costs catering to a fast-aging population, piling on more debt.
The budget — endorsed by Prime Minister Fumio Kishida's Cabinet on Friday — features record military and welfare spending as Japan confronts regional security challenges from an ever-assertive China and an unpredictable North Korea.
Kishida's controversial plan to double Japan's defense spending to 2% of gross domestic product by 2027 contributed to a record ¥6.8 trillion increase in spending, adding to the nation's public debt already exceeding 2.5 times the size of its economy.