The Ministry of Finance announced a total of ¥143.0656 trillion in estimated requests for the FY2027 general account budget. It newly established a ¥12.173 trillion investment allocation and increased the total through integration with the supplementary budget. It also indicated a policy of reorganising existing recurring measures into the initial budget.
The Ministry of Finance announced a record ¥143.0656 trillion in estimated requests for the FY2027 general account budget. The figure was 16.8% above the previous year's ¥122.4454 trillion, marking a record high for the fourth consecutive year. Investment-related spending, including the newly established Strong and Prosperous Japan investment allocation, pushed up the total.
The investment allocation for the general account, which will support growth investment, came to ¥12.173 trillion. The government indicated that it aims to invest in growth sectors and stimulate private-sector investment. The Ministry of Finance is expected to assess the requests submitted by each ministry and agency toward year-end and move into full-scale budget compilation.
At a news conference, Finance Minister Katayama Satsuki (片山さつき) said the government would refine the budget into a leaner one focused on cost-effectiveness and eliminating waste. She explained that the investment allocation would be assessed based on its contribution to growth and its potential to induce private investment.
As market concerns mount, long-term interest rates have at times approached levels not seen in 30 years. How to reconcile growth investment with fiscal sustainability will be a key focus of next year's budget.