Overview
- Defense funding reaches a record about ¥9.04 trillion, including ¥177 billion for upgraded Type-12 missiles and ¥100 billion for the SHIELD unmanned systems program with initial deployments accelerated to southwestern Japan by March.
- The government plans roughly ¥29.58 trillion in new bond issuance as debt-servicing costs climb to a record near ¥31.28 trillion based on a higher 3.0% assumed interest rate.
- Social security spending rises to about ¥39.06 trillion, reflecting inflation and a 3.09% increase in core medical service fees in the biennial revision.
- Growth measures include ¥1,239 billion for semiconductor and AI sector support and roughly ¥700 billion to launch free high school education and elementary school meals from fiscal 2026.
- The ruling coalition lacks an upper-house majority and is courting opposition backing, with the Democratic Party for the People seeking a higher nontaxable income threshold of ¥1.78 million as a condition for support.