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Japan’s cabinet has approved a record initial budget for the fiscal year beginning in April, which includes some measures aimed at promoting Prime Minister Fumio Kishida’s new vision of capitalism while adding to the developed world’s largest debt burden.
Japan plans 107.6 trillion yen ($940 billion) in overall spending for the fiscal year ending March 2023, a 0.9 percent increase from the initial budget for the current fiscal year, the finance ministry confirmed Friday.
Actual spending will almost certainly increase due to the possibility of additional budgets, three of which were drafted last year during the pandemic, adding 73 trillion yen to total spending.
Big ticket items include increased social security spending of 36.3 trillion yen, debt servicing of 24.3 trillion yen, and increased defense spending and reserves to combat the coronavirus and its variants.