Japan Approves Record-Breaking Budget Exceeding 1100 Trillion Won

[Asia Economy Reporter Seulgina Jo] Japan has finalized the largest budget ever, amounting to 1150 trillion won.

According to Nihon Keizai Shimbun, the Japanese House of Councillors approved the 2020 fiscal year (April 2020 to March 2021) budget bill in a plenary session on the afternoon of the 27th. The total general account expenditure was 102.658 trillion yen (approximately 1150.5 trillion won), marking the highest level for eight consecutive years. This represents a 1.2% increase compared to the previous year's original budget.

Specifically, social security-related expenses increased by 5.1% from the previous year to 35.8608 trillion yen, reaching an all-time high. Defense spending was also confirmed at 5.3133 trillion yen, up 1.1%. Japan has been expanding its defense budget to record levels for six consecutive years.

The 500 billion yen included as a contingency fund for the novel coronavirus infection (COVID-19) response is expected to be used as a resource for future economic measures. Japanese Prime Minister Shinzo Abe will hold a press conference starting at 6 p.m. on the 28th. At this event, he is expected to explain measures to prevent the spread of COVID-19 and emergency economic policies.

Prime Minister Abe attended the House of Councillors Budget Committee inquiry before the plenary session on the same day and said, "COVID-19 is having a significant impact on our economy," adding, "We will consider large-scale economic and fiscal policies."