Japan to greenlight record $730bn budget with reduced bond issuance

Higher wages, strong corporate earnings seen boosting tax revenue to all-time high

20241226N Japan budget

Japan's initial fiscal 2025 budget marks a return to rising spending with higher expenditures on defense and social security. (Photo by Akira Kodaka)

YOHEI HIROSE, Nikkei staff writer

TOKYO -- Japan's cabinet is set to approve a record 115.54 trillion yen ($731.28 billion) general-account budget for fiscal 2025 on Friday, with about a quarter of the total covered by debt.

But with record-high tax revenues expected, bond issuances will decline by 6.8 trillion yen from the initial fiscal 2024 budget to about 28.65 trillion yen.

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