Overview
- Draft budget totals about ¥122.3 trillion with roughly ¥29.6 trillion in new government bonds and projected tax revenue of around ¥83.7 trillion.
- Finance ministry plans to cut issuance of 20‑, 30‑ and 40‑year JGBs to about ¥17 trillion next fiscal year and keep 10‑year supply unchanged.
- The shift responds to market strain, with 30‑year yields touching a record near 3.45% as investors fret over debt oversupply.
- Spending priorities include about ¥39 trillion for social security, roughly ¥8.8 trillion for defense, and around ¥31 trillion for debt service.
- The government upgraded growth projections to 1.1% for the current fiscal year and 1.3% for fiscal 2026, building on a ¥21.3 trillion stimulus compiled in November.