Japan requests record 7.7 trillion yen budget for 2027 SME growth

Japan's Ministry of Economy, Trade and Industry has released a record-breaking budget request for fiscal year 2027, totaling approximately 7.78 trillion yen. This figure represents a nearly 2.5-fold increase over the previous year. A significant portion of this request, 6.3 trillion yen, is allocated to the ‘Strong and Prosperous Japan’ investment framework.

The new budget structure emphasizes growth-oriented goals for small and medium-sized enterprises (SMEs). Key initiatives include the ‘SME Growth Acceleration Subsidy’ for companies aiming for revenues exceeding 10 billion yen, and the ‘New Business Entry and Monozukuri Commercial Service Subsidy’ for those targeting 1 billion yen. Additionally, new subsidies for labor-saving, digitalization, and AI investment are expected.

In relation to current labor-saving initiatives, Planbase Inc. reported an 85.7% success rate for its supported applicants in the 6th round of the ‘SME Labor-Saving Investment Subsidy (General Type)’, significantly exceeding the national average of 63.9%. This subsidy aims to help SMEs address labor shortages through automation and productivity enhancements.