The Strategist

Japanese government approves record budget for next fiscal year

12/24/2021 - 09:08

Japan's government approved a record-breaking 107.596 trillion yen ($935.62 billion) budget for the coming fiscal year, April 1, 2022 to March 31, 2023, at a meeting on Friday, NHK television reported.

The country's budget exceeds 100 trillion yen for the fourth consecutive year. It is noted that due to the country's aging population, the financial burden on the health and social insurance system will increase.

In addition, defence spending will reach an all-time high of 5.368 trillion yen ($46.68 billion). As previously reported, this is due to plans to develop drones with artificial intelligence, and modifications to long-range guided cruise missiles.

A total of 15.88 trillion yen ($140 billion) will be allocated for grants to the regions.

The revenue side of the budget will be 65.24 trillion yen ($567.26 billion). The budget shortfall, more than a third (34.3%), will be replenished mainly by issuing government securities worth 36.926 trillion yen ($321.1 billion).

The budget will be reviewed and adopted by parliament, whose regular session opens on 17 January next year.