The budget request for FY2025 exceeds 117 trillion yen, the largest ever, marking the fourth consecutive year it has surpassed 110 trillion yen. This increase is fueled by rising costs for government debt, particularly due to higher interest payments, and growing defense spending.
Interest payments have surged to a record 28.9116 trillion yen, largely influenced by the Bank of Japan’s interest rate hikes. Defense spending has also exceeded 8 trillion yen for the first time, as part of a 5-year plan to increase defense funding by 43 trillion yen.
1. The FY2025 budget request exceeds 117 trillion yen, a record high and the fourth year over 110 trillion yen
2. Interest payments hit a record 28.9116 trillion yen, driven by Bank of Japan rate hikes
3. Defense spending surpasses 8 trillion yen for the first time, part of a 5-year, 43 trillion yen increase plan
