Total general account budget requests for the next fiscal year reached ¥143.0656 trillion, setting a record high for the fourth consecutive year. The total was inflated by the newly established investment framework and its consolidation with the supplementary budget.
The Ministry of Finance announced on the 4th that total general account budget requests for the next fiscal year amounted to ¥143.0656 trillion. This was approximately ¥20 trillion higher than the previous fiscal year, setting a record high for the fourth consecutive year.
The newly established “Strong and Prosperous Japan” investment framework received general account requests totaling ¥12.173 trillion. The government aims to promote investment, spur private-sector investment and drive economic growth.
Debt service costs also reached a record ¥36.6386 trillion, while the assumed long-term interest rate was raised from 3.0% to 3.8%. Interest payments are projected at ¥16.5888 trillion, approximately ¥3.5 trillion higher than the ¥13.0371 trillion included in the initial FY2026 budget.
Social security spending rose to ¥33.6872 trillion in response to population aging, exceeding the initial FY2026 budget. There were also numerous requests for defense spending, support for farmers and other items without specified amounts, which are expected to be fleshed out by the end of the year.
The government has indicated that it plans to hold new government bond issuance to around ¥40 trillion. The investment framework's funding will be managed through special accounts and could affect the general account allocation.