The Japanese Prime Minister will announce a record initial budget of 122 trillion yen for the fiscal year 2026.

Japanese Prime Minister Sanae Takichi's government plans to announce a record initial budget for the fiscal year starting in April, with spending growth exceeding the inflation rate. Takichi said on Thursday that the total budget for the fiscal year starting in April 2026 is expected to be around 122.3 trillion yen. This is an increase of about 6.3% from this fiscal year's budget of 115.2 trillion yen, setting a new record for the initial budget. Takichi said that in order to secure these funds, the government plans to issue government bonds to raise about 29.6 trillion yen. She stated that the budget's reliance on debt issuance will decrease from 24.9% this fiscal year to 24.2%. At the end of a meeting with ruling party and government members, she said, "I believe this budget strikes a balance between strengthening economic power and ensuring fiscal sustainability."