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[BUSINESS] · Japan · 21 sources

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Japan budget requests hit record 143 trillion yen

Japanese government agencies have submitted budget requests for fiscal year 2027, with the total general account requests expected to reach approximately 143 trillion yen. A key feature of this budget is the newly established 'Strong and Prosperous Japan' investment category, which lacks a traditional request ceiling to encourage growth in sectors like AI, semiconductors, and energy.

The Ministry of Defense has requested a record 8.9 trillion yen, with projections suggesting the final amount could exceed 10 trillion yen following security strategy revisions. This request prioritizes artificial intelligence, unmanned systems, and long-range weapons to address regional security challenges. Specific plans include acquiring MQ-9B SeaGuardian drones and developing an 'AI orchestrator' platform.

Social welfare costs remain a major driver of the budget. Medical expenses for fiscal 2025 reached a record 49.2 trillion yen, a 2.6 percent increase driven by an aging population and high-cost medications such as anticancer drugs. Additionally, pension and medical care requests will include a 390 billion yen natural increase to account for economic and demographic shifts.

Entities

Financial Services Agency · Government of Japan · Japan · Ministry of Defense · Ministry of Education, Culture, Sports, Science and Technology · Ministry of Finance · Ministry of Foreign Affairs of Japan · Ministry of Health, Labour and Welfare · Sanae Takaichi · Teikoku Databank

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