Japan’s Fiscal 2026 Budget Request Likely to Hit Record ¥122 Tril. Due to Social Security Costs, Defense Spending

The Yomiuri Shimbun

16:07 JST, August 29, 2025

The general account of budget requests from ministries and agencies for fiscal 2026 are expected to total more than ¥122 trillion, up from the fiscal 2025 figure of ¥117.6 trillion, setting a record for the third consecutive year.

Social security costs continue to rise due to the aging population, while defense spending and bond expenses, which are used to repay national debt in the form of government bonds as well as interest payments, are also increasing.

It is the fifth consecutive year that the requested amount exceeded ¥110 trillion. The de facto deadline for ministries to submit their requests is Friday, and the Finance Ministry set to announce the total in early September.

The Health, Labor and Welfare Ministry’s request reached a record ¥34.7 trillion, driven by increased expenses for pensions and medical care. The Defense Ministry also requested a record ¥8.8 trillion to strengthen its capabilities against China through the deployment of drones and bolstering its defense of the Nansei Islands.

The government bond expenses exceed total ¥32 trillion, up by more than ¥4 trillion from the initial fiscal 2025 budget as a result of swelling interest payments.

Web: Japan’s Fiscal 2026 Record Budget Request Likely to Top ¥122 Tril. due to Social Security Costs, Defense Spending