Japan’s FY 2022 budget requests hit record of over 111 tril. yen
Written by tokyoclub on August 31, 2021
The total amount of general-account budget requests by Japanese ministries and agencies for fiscal 2022 has hit a record of over 111 trillion yen ($1 trillion) as debt-servicing costs are expected to balloon amid the coronavirus pandemic, a Kyodo News tally found Tuesday.
The calculated figure for the year starting April topped 110 trillion yen for the first time and 100 trillion yen for the eighth year in a row, also pushed up by record-high social security spending on the back of the nation’s rapidly graying population and rising defense costs to meet security challenges posed by China.
Finance Ministry (Kyodo)
Although much of the planned spending to combat the coronavirus has yet to be included, the total sum demanded is larger than the 106.6 trillion yen initial budget for fiscal 2021, which included 5 trillion yen reserved for responding to the pandemic.
After assessing the requests, the Finance Ministry will compile the initial draft budget in December before Diet deliberations.
The latest figure suggests that the initial budget for fiscal 2022 could hit an all-time high for the 10th straight year, fueling concern over the further deterioration of Japan’s fiscal health, already the worst among major economies with debt twice the size of gross domestic product.