Japan's Ministry of Finance expects debt repayment costs to surge 17% next fiscal year, reaching a record 36.6 trillion yen. This increase reflects rising bond yields and higher interest rates, of which 16.6 trillion yen will be used to pay interest. Japan's overall budget request is also expected to exceed 130 trillion yen for the first time, which heightens concerns about government spending and Prime Minister Takaichi's fiscal plan.

Japan's Ministry of Finance expects debt repayment costs to surge 17% next fiscal year, reaching a record 36.6 trillion yen. This increase reflects rising bond yields and higher interest rates, of which 16.6 trillion yen will be used to pay interest. Japan's overall budget request is also expected to exceed 130 trillion yen for the first time, which heightens concerns about government spending and Prime Minister Takaichi's fiscal plan.