TOKYO, April 7 (Xinhua) -- Japan's parliament on Tuesday passed a record 122.31 trillion yen (around 766 billion U.S. dollars) budget for fiscal 2026, the first time in 11 years that the annual spending plan was not in place before the start of the fiscal year on April 1.
The general account budget hits a record high for the second consecutive year as welfare expenditure rises amid Japan's aging population. It also earmarks more than 9 trillion yen for defense-related purposes for the first time, drawing public criticism.
The budget reflects Prime Minister Sanae Takaichi's expansionary fiscal stance to spur growth, but includes no measures to address rising energy and other costs stemming from the Middle East conflict, prompting opposition lawmakers to call on the government to consider drafting a supplementary budget.
While revenues have grown from last year, the Japanese government plans to issue 29.58 trillion yen in new bonds to cover a shortfall, underscoring Japan's heavy reliance on debt at a time when its fiscal health ranks worst among G7 economies.
Although the ruling coalition of the Liberal Democratic Party (LDP) and the Japan Innovation Party holds only a minority in the 248-member House of Councillors, the draft budget passed after securing support from some opposition members.
The budget bill cleared the more powerful House of Representatives on March 13 after Takaichi pushed it through by significantly curtailing deliberations, capitalizing on the supermajority her LDP won in the Feb. 8 general election despite opposition protests.
But as the annual budget failed to pass in time for the new fiscal year, an 8.56 trillion yen stopgap budget was enacted on March 30 to cover government spending for the first 11 days of April. Once the fiscal 2026 budget takes effect, the provisional budget will be absorbed into it and expire. ■