Overview
- On Friday, Aug. 21, ministries submitted preliminary FY2027 budget requests that together top ¥130 trillion for the first time.
- The Education Ministry filed a record ¥8.7 trillion request that would sharply increase university operating grants and double competitive research funding.
- The Foreign Ministry sought about ¥1.2 trillion to boost soft-power diplomacy, expand security-assistance funding, digitalize consular services, and fund ODA for maritime charting and counter-disinformation work.
- Officials raised the assumed interest rate used in budget calculations from about 3.0% to roughly 3.8%, which pushes projected debt-service costs far higher and narrows room for other spending.
- Cabinet and interministerial reviews will now trim and set final figures but the shift from supplementary budgets into the initial budget and many unspecified requests mean the final total and fiscal impact remain uncertain.