Budget Requests By Japanese Ministries & Gov't Agencies Hit New Record

Kyodo News circulated a tally of budget requests by Japanese government offices for FY2024 which suggests that their total sum may have reached a record-breaking level of Y114tn amid increases in debt-servicing costs, as well as defence and social security spending.

• Separately, Reuters ran a source report noting that "budget demands will hit a record for the next fiscal year, exceeding Y112tn" and pointing to the same sources of increased spending.
• The deadline for ministries and government agencies to submit their requests to the Finance Ministry expired today. The Ministry will now review the requests before drafting the FY2024 fiscal plan in December.
• Among the key sources of expected rise in spending is a request from the Defence Ministry for a 12% increase in its budget, as it is looking to fund the construction of two warships equipped with the Aegis missile interceptor systems.
• Kyodo reports that "a substantial portion of this increased expenditure needs financing through the issuance of government bonds despite Japan's fiscal health already being the worst among developed nations."