Japan's $730B draft 2025 budget gets green light, now headed to parliament

ISTANBUL

Japan's government on Friday approved a 115.5 trillion yen ($730 billion) draft budget for fiscal year 2025, with the plan now headed to parliament.

The new budget was driven by growing social security and defense spending, Kyodo News reported, adding that they fueled concerns about the country's fiscal health.

This budget broke through the record level of 114.38 trillion yen set in 2023.

Due to Japan's aging population and low birth rate, about a third of the budget, 38.28 trillion yen, will be spent on social security.

The budget bill will be submitted to parliament for debate starting in January.

Japanese Prime Minister Isiba Shigeru told reporters that he would like the budget to be passed quickly.

Isiba said comprehensive explanations will be given and an environment will be created to encourage opposition parties to support the budget.