Overview
- The cabinet cleared an initial general-account budget of about ¥122.3 trillion for FY2026, with defense spending set at roughly ¥9 trillion, up 3.8% to a new high.
- Projected tax receipts exceed ¥83 trillion, new government bond issuance is about ¥29 trillion, and debt service costs reach around ¥31 trillion, drawing warnings over fiscal sustainability.
- Party reactions diverged as the Democratic Party for the People praised the plan’s balance and signaled cooperation, while the Constitutional Democratic Party criticized the scale and pledged rigorous questioning next month.
- China’s Foreign Ministry denounced Japan’s larger defense outlays, with spokesperson Lin Jian accusing Tokyo of pursuing a dangerous shift in security policy.
- The government approved ¥264.7 billion for Okinawa-linked programs including GW2050-related land measures, and it will open a public consultation on tax special measures and subsidies from Jan. 5 to Feb. 26.