Japan lags behind U.S., U.K. in curbing pandemic deficits

Rising interest rates pose risk for Tokyo as it struggles to scale back stimulus

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Japan's massive debt burden could grow heavier as interest rates rise. © Reuters

MARIKO KODAKI, Nikkei staff writer

TOKYO -- Japan's parliament on Tuesday approved a record high budget for the 11th year in a row, falling behind other advanced economies in reducing deficits racked up at the height of the coronavirus pandemic.

The fiscal 2023 budget totals 114 trillion yen ($872 billion) in spending, 6.7 trillion yen more than the initial budget for fiscal 2022, which ends Friday.

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