Japan government plans record $730 billion budget for next fiscal year, Jiji reports By Reuters

TOKYO (Reuters) – Japan’s government is in final talks to set a record general account budget of more than 115 trillion yen ($732 billion) for the fiscal year starting in April, the Jiji news agency reported on Wednesday.

The initial budget is likely to top 110 trillion yen for the third straight year, surpassing last year’s and 2023’s totals, setting it at a record high, according to public broadcaster NHK.

The government made a record budget request in September as the Bank of Japan exits its decade-long stimulus program.

The assumed interest rate will increase from 1.9 percent of the current year to 2.1 percent starting in April, increasing the costs of interest payments and debt service, the Ministry of Finance said.

($1 = 157.1100 yen)