Japan government plans record $730 billion budget for next fiscal year, Jiji reports

TOKYO (Reuters) – Japan’s government is in final talks to compile a record over 115 trillion yen ($732 billion) general account budget for the fiscal year from April, Jiji news agency reported on Wednesday.

The initial budget will likely exceed 110 trillion yen for the third straight year, surpassing last year’s and 2023 amounts to set it at a record high, according to public broadcaster NHK.

The government in September made a record budget request as the Bank of Japan shifts away from its decade-long stimulus programme.

The assumed interest rate would increase to 2.1% for the year starting in April from the current year’s 1.9%, boosting debt-servicing costs for interest payments and debt redemption, the finance ministry has said.

($1 = 157.1100 yen)