General-account spending to total ¥114 trillion in FY 2023

Jiji Press

16:32 JST, December 19, 2022

TOKYO (Jiji Press) — The government is considering calling for about ¥114 trillion in general-account spending under its budget for fiscal 2023, which starts in April next year, it was learned Monday.

The amount of general-account expenditures is thus likely to hit a record high for the 11th straight year and surpass ¥100 trillion for the fifth straight year, after coming to ¥107.5964 trillion in the fiscal 2022 initial budget.

The increase reflects higher spending to boost the country’s defense capabilities and ballooning social security costs due to the aging population.

The government is expected to adopt its fiscal 2023 budget plan at a cabinet meeting as early as Friday.

In the coming fiscal year, the government expects its tax revenue to hit a record high of around ¥70 trillion, up from ¥65.235 trillion projected for fiscal 2022. It anticipates an increase in corporate tax revenue thanks to the resumption of economic activities after COVID-19 restrictions and the yen’s depreciation that inflates earnings from overseas operations when converted into the Japanese currency.