the government led by Japanese Prime Minister Sanae Takaichi plans to announce a record preliminary budget for the new fiscal year starting in April, with spending growth exceeding the inflation rate. Sanae Takaichi stated on Thursday that the total budget for the fiscal year starting in April 2026 is about 122.3 trillion yen (approximately 786 billion USD). This is an increase of about 6.3% from the 115.2 trillion yen allocated for the current fiscal year, marking the largest initial budget on record. Sanae Takaichi said that to help raise funds, the government plans to raise about 29.6 trillion yen through new government bond issuance. She also mentioned that the budget's reliance on debt issuance will decrease from 24.9% this year to 24.2%. Takaichi said, "I believe this budget strikes a balance between strengthening the economy and ensuring fiscal sustainability." In addition to new bond issuance, tax revenue will be key to funding the budget, with next year's tax revenue expected to be about 83.7 trillion yen.