Japan's 2027 budget estimate requires a record high of 143 trillion yen, and Sanae emphasizes fiscal discipline

(Central News Agency, Tokyo, May 5, comprehensive foreign news report) Japanese government ministries have previously submitted budget estimates to the Ministry of Finance for 2027, totaling 143 trillion yen, a record high. To this end, Japanese Prime Minister Takaichi Sanae particularly emphasized its compilation policy, hoping to dispel external doubts.

Japan's Jiji News Agency reported that Japan's long-term interest rates rose to a 30-year high, and the United States also increased pressure on Japan, requiring Japan to shift from large-scale financial easing and proactive fiscal policies.

The total number of budget requirements reached a new high this time, further causing concerns in the financial market. Takaichi Sanae hopes to explain the government's policy guidelines in detail to domestic and foreign countries and maintain its signature policy of "responsible and proactive finance."

Takaichi Sanae posted an article on his X platform account on the 4th to explain the government's budget preparation policy, emphasizing that "if it is a good idea and a good policy, it should be converted into rules to allow the truly necessary budget amount to be proposed."

However, she also said that it was "impossible that all requests from various ministries will be approved," indicating that the government would review them one by one.

The total budget requirement for 2027 is a significant increase from the previous year's approximately 122 trillion yen (approximately NT$24.8 trillion). Takaichi Sanae explained that the government is "gradually moving away from reliance on supplementary budgets."

She emphasized that including items that were included in the supplementary budget in the past into the annual initial budget would allow "more time for repeated discussions" and help ensure "budgetary discipline."

However, after the deadline for budget estimates from various ministries at the end of August, news came out that the total amount would reach approximately 143 trillion yen (approximately NT$29 trillion). Long-term interest rates immediately rose to the 3% range, and the market reacted sensitively to concerns about fiscal discipline.

Japan's interest rate trends have also attracted attention from the U.S. market, and outsiders are even worried about the impact it will have on the U.S. economy. U.S. Treasury Secretary Scott Bessent revealed on September 1 that he had told Japan that Japan should "stop reflation policies including fiscal expansion."

The Japanese government actively "put out the fire" through Sanae Takaichi's posts on X and other methods. Japanese Finance Minister Katayama Satsuki said in an interview with reporters on the 3rd that Bessent "did not make any special request." Government sources believe that “the focus of Bessant’s speech was to support ‘high-market economics’”.