Overview
- Cabinet approval sets general account spending at about ¥122.3 trillion, with projected tax revenue above ¥83 trillion, new bond issuance near ¥29 trillion, and debt-service costs around ¥31 trillion as commentators flag rising long-term yields.
- Defense outlays climb roughly 3.8% to a record near ¥9 trillion, and the medical fee schedule’s core component rises by more than 3% for the first time in decades.
- Okinawa-related funding is set at ¥264.7 billion, including support for redevelopment of former U.S. base sites and new initiatives in IT and industry–academia collaboration.
- Political reactions diverge: the Democratic Party for the People praises the package as balanced and signals cooperation, while the Constitutional Democratic Party calls it “not the best” and plans tough Diet scrutiny; China’s Foreign Ministry denounces the defense increase.
- The government will take public submissions from January 5 to February 26 on reviewing tax incentives and subsidies via the Cabinet Secretariat website, and separately Urasoe’s city council passed temporary pay cuts for its mayor and vice mayor over major construction cost overruns.