Japan approves record $785 billion budget as Takaichi balances spending and debt

Key Highlights

• However, they will not fully offset rising debt-servicing costs, along with increased social welfare and defence expenditure. More from World ‘Foreign governments will not restrict us’: Israel rejects 14-nation call to reverse West Bank settlement approvals How a Sikh lawyer forced Canada to drop century-old oath to monarchDebt-servicing costs, including interest payments and redemptions, are projected to rise 10.8 percent to 31.3 trillion yen.
• The assumed interest rate has been set at 3.0 percent, the highest in 29 years, as the Bank of Japan moves away from its ultra-loose monetary policy. Japan already carries the largest debt burden among developed economies, at more than twice the size of its economy, making it particularly vulnerable to rising borrowing costs and complicating Takaichi’s push for aggressive fiscal stimulus. The prime minister also plans to drop the annual primary budget balance as Japan’s fiscal consolidation target and instead adopt a multi-year goal to allow greater flexibility in government spending. Quick ReadsView All‘Foreign governments will not restrict us’: Israel rejects 14-nation call to reverse West Bank settlement approvalsHow a Sikh lawyer forced Canada to drop century-old oath to monarchFollow Firstpost on Google.
• Get insightful explainers, sharp opinions, and in-depth latest news on everything from geopolitics and diplomacy to World News.
• Stay informed with the latest perspectives only on Firstpost. HomeWorldJapan approves record $785 billion budget as Takaichi balances spending and debtEnd of Article Read MoreFind us on YouTubeSubscribeHomeWorldJapan approves record $785 billion budget as Takaichi balances spending and debtEnd of ArticleQuick Reads‘Foreign governments will not restrict us’: Israel rejects 14-nation call to reverse West Bank settlement approvalsIsrael rejected a joint appeal by 14 countries urging reversal of its approval for 19 new settlements in the occupied West Bank, calling the criticism interference and discriminatory.
• Foreign Minister Gideon Sa’ar said the settlements were approved for security reasons and are on land Israel considers state land, dismissing claims of international law violations.