The total expenditure of Japan's 2026 draft budget may exceed 120 trillion yen, setting a new record. Due to concerns about Prime Minister Takaichi Sanae's large-scale spending plans, the yield on Japanese treasury bonds has recently risen, and investors are preparing to issue huge amounts of debt. The Japanese Diet approved a supplementary budget of 18.3 trillion yen for the 2025 fiscal year.

The total expenditure of Japan's 2026 draft budget may exceed 120 trillion yen, setting a new record. Due to concerns about Prime Minister Takaichi Sanae's large-scale spending plans, the yield on Japanese treasury bonds has recently risen, and investors are preparing to issue huge amounts of debt. The Japanese Diet approved a supplementary budget of 18.3 trillion yen for the 2025 fiscal year.