Japan's budget requests set to top 130 trillion yen for first time

Budget requests from Japanese government ministries for fiscal year 2027 are on track to exceed 130 trillion yen ($818 billion) for the first time, marking a record high for the fourth consecutive year.

Kyodo News reported Saturday that ministry requests for fiscal year 2027 — covering April 2027 through March 2028 — are projected to surpass 130 trillion yen. The previous year's requests totaled 122 trillion yen.

The sharp increase is largely driven by new-growth investment. The Japanese government approved budget requests in that category without imposing a ceiling, allowing related spending to expand.

By ministry, the Defense Ministry called for a record 8.9 trillion yen to fund the deployment of interceptor drones and other programs.

The Ministry of Economy, Trade and Industry requested 7.7 trillion yen, of which about 4.5 trillion yen is earmarked for AI and semiconductor development.

The final budget figure could exceed current projections, as many requests were submitted without specific amounts — a practice known as "item requests."

Finance Minister Katayama Satsuki made clear the government intends to pursue active fiscal spending, saying there is "no longer anything that can be called a ceiling," Kyodo News said.

The government will close the ministry-level request process by the end of this month. The Finance Ministry will then review the submissions before the cabinet finalizes the budget.