As of 2026, the Ministry of Economy, Trade and Industry's preliminary budget request for FY2027 is expected to total approximately ¥7.7268 trillion, of which approximately ¥4.525 trillion is reportedly to be allocated to the newly established Strong and Prosperous Japan investment framework. Support for small and medium-sized enterprises is expected to total approximately ¥900 billion, with AI, semiconductors and robotics among the main areas covered by the investment framework.
The Ministry of Economy, Trade and Industry's preliminary budget request for FY2027 is expected to total approximately ¥7.7268 trillion, roughly 2.5 times the ¥3.0693 trillion total related to FY2026. Approximately ¥4.525 trillion has been allocated to the newly established Strong and Prosperous Japan investment framework, and the policy is to allow requests without specified amounts.
The reported breakdown of the main investment framework items includes approximately ¥1.4342 trillion for AI, semiconductors and robotics, ¥680 billion for securing critical minerals, ¥220 billion for strengthening supply measures for naphtha and other materials, and ¥900 billion for investment support for small and medium-sized enterprises. These figures are based on media reports and include information released before the formal announcement.
With regard to subsidies for small and medium-sized enterprises, reports indicate that the government is considering consolidating labor-saving, digitalization and AI investment subsidies into a single program. The Small Business Sustainability Subsidy and subsidies for mergers and acquisitions and business succession are also expected to be included in the budget request.
The budget is expected to proceed toward enactment within the fiscal year after deliberations in the ordinary session of the Diet, among other steps. Reports have also mentioned the possibility that subsidy application periods could be brought forward as a result of the policy to move away from reliance on supplementary budgets.