Japan FY 2027 budget requests to hit new high of about 143 tril. yen

TOKYO - Japan's budget requests for fiscal 2027 are set to hit a new high of about 143 trillion yen ($890 billion), as Prime Minister Sanae Takaichi seeks to spur growth through fiscal spending and as debt-servicing costs are poised to rise amid inflation, a Kyodo News tally showed Monday.

The budget requests come as financial markets remain cautious about the Takaichi government's "responsible and proactive" spending plans and their potential to further worsen the country's fiscal health, already the worst among advanced economies, and trigger another sell-off of the yen and Japanese government bonds.