Overview
- The government plans about ¥29.6 trillion in new bond issuance while lowering the budget’s debt dependence to 24.2%.
- The Finance Ministry will apply a temporary 3% interest-rate assumption, the highest since 1997, increasing debt-servicing costs.
- Social-security outlays are projected at roughly ¥39.1 trillion and defense spending is climbing, tightening fiscal room.
- Official forecasts now project 1.1% growth for the current fiscal year and 1.3% in FY2026, with consumption up 1.3% and capital investment rising 2.8%.
- A ¥21.3 trillion stimulus unveiled in November includes cash for families with children, utility-bill subsidies, and funding for infrastructure, AI, and semiconductors.