The Ministry of Economy, Trade and Industry disclosed total budget requests of approximately ¥7.7268 trillion for fiscal 2027, including a newly established "Strong and Prosperous Japan" investment framework focused on investment in AI and semiconductors. Under a policy of reducing reliance on supplementary budgets, expenses that had previously been included at the supplementary-budget stage are also being incorporated into the initial budget.
The Ministry of Economy, Trade and Industry's preliminary request for the initial budget for fiscal 2027 is expected to total approximately ¥7.7268 trillion. The newly established "Strong and Prosperous Japan" investment framework has no upper limit and includes ¥4.525 trillion. The ministry plans to prioritize investment in AI and semiconductors.
Within the new investment framework, approximately ¥1.4342 trillion was requested for the development of foundation models for "physical AI," which operates robots, and for strengthening the semiconductor manufacturing base. Approximately ¥680 billion was included to secure critical minerals, while approximately ¥220 billion was allocated to diversify naphtha procurement sources and strengthen inventories of chemical products.
Under the Fiscal Investment and Loan Program, the government plans not to seek funding for the Cool Japan Fund, the public-private fund that supports overseas demand development. Although the specific amount is being withheld for now, discussions are expected to advance during the budget formulation process toward year-end.
This article is based on reporting by Jiji Press and covers the broad outline of the government's preliminary budget requests and its priority areas.