The Japanese government approved a record budget for the upcoming fiscal year on Friday, to pay for everything from bigger defence spending to ballooning social security costs as inflation persists. – Market worries –The expanding budget also arrives as the market worries about Takaichi’s big spending policies adding to Japan’s public debts. The 122-trillion-yen figure compares with the 115 trillion yen sought for the current fiscal year to March, which was also a record. Some observers have drawn comparisons to the United Kingdom’s 2022 bond market turmoil under then-premier Liz Truss. Kiuchi noted that, under Takaichi, the extra budget quickly ballooned, reaching $18 trillion yen.

Source: Punch December 26, 2025 11:11 UTC