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BackThe Ministry of Finance requests a total of 143,065.6 billion yen for next year's budget, the largest ever
The Ministry of Finance requests a total of 143,065.6 billion yen for next year's budget, the largest ever
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朝日新聞48 minutes agoBusiness1 min readJapanView original

The Ministry of Finance requests a total of 143,065.6 billion yen for next year's budget, the largest ever

Ministry of FinanceEstimate requestgeneral account

Quick Look

  • On the 4th, the Ministry of Finance announced that the total general account budget amounted to 143.656 trillion yen, the highest ever, based on budget requests for next year from various ministries and agencies.
  • Long-term interest rates have reached 3% for the first time in 30 years due to concerns about the Takaichi administration's ``responsible and proactive fiscal policy'', and if distrust in fiscal discipline increases, there is a risk that government bond selling will accelerate and a rise in long-term interest rates.

AI-generated summary

Why It Matters

The Takaichi administration established an investment quota for a ``strong and prosperous Japan'' and accepted requests from various ministries and agencies without any upper limit. As a result, the estimated total requested amount was the largest ever.

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The Ministry of Finance announced on the 4th that the total budget for next year's budget, which it had received from various ministries and agencies by the end of August, had reached a record high of 143,065.6 billion yen. In the financial market, long-term interest rates hit 3% on the 1st for the first time in 30 years due to concerns about the Sanae Takaichi administration's ``responsible and proactive fiscal policy.'' There is a possibility that the actual budget amount will be even higher, and if there is a growing distrust of fiscal discipline, there is a risk that government bonds will be sold and long-term interest rates will spur a rise.

The size of this request exceeds the original budget for FY2016 (122,309.2 billion yen) by 20,756.4 billion yen. This is largely due to the fact that Prime Minister Takaichi did not set a cap on the amount requested from each ministry under the investment framework for a ``strong and prosperous Japan.'' The amount requested using this investment framework was 12,173 billion yen. Including the special account, it amounts to 14,234.5 billion yen.

The increase in the requested amount is partly due to the inclusion of some expenses that had previously been included in the supplementary budget as part of the Takaichi administration's budget reform. As a result, the Ministry of Finance explains that the increase will be limited to 2,453 billion yen compared to the 140,612.6 billion yen that is the sum of the supplementary budget for fiscal 2025 (18,303.4 billion yen) and the original budget for fiscal 2026.

The background to this explanation is...

What to Watch

AI outlook — possibilities, not facts

  • Long-term interest rates may rise further

    Possible · Within weeks

Open Questions

  • How is the actual budget amount determined?
  • How much impact does a rise in long-term interest rates have on the real economy?

Related Topics

Ministry of Finance
PeopleSanae Takaichi
PlacesJapan
TopicsEstimate requestgeneral accountlong term interest rateSanae TakaichiResponsible and proactive financenational debt
This article was originally published by 朝日新聞.

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