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Japan Passes Record ¥122.3 Trillion FY2026 Budget After Delay

Opposition parties seek a supplementary package to tackle energy costs linked to the Iran war.

Overview

  • The Diet sealed passage Tuesday after a month-long delay from a snap election and a committee deadlock resolved by Chairman Masahito Fujikawa under Diet law.
  • The general account totals a record ¥122.3 trillion, driven by higher social security costs and a record ¥9.04 trillion defense outlay, with funding that includes free high school tuition and free elementary school meals.
  • The plan relies on ¥29.58 trillion in new bonds to cover the gap between spending and revenue, underscoring continued dependence on borrowing.
  • A provisional ¥8.56 trillion stopgap, enacted March 30 to fund the first 11 days of the fiscal year, will be absorbed into the full budget.
  • Opposition lawmakers are pressing for a supplementary budget to offset higher energy and living costs tied to the Iran war.