The Japanese government has approved a record budget bill of 122.3 trillion yen (about US$783 billion) for the 2026 fiscal year—which starts in April 2026.

It also envisages the highest defense spending in the country's history, at 8.8 trillion yen (US$56.3 billion).

The increase in this military budget is part of the Japanese government's commitment to developing defense capabilities and producing offensive weapons.

Earlier, Prime Minister Sanae Takahashi had set a goal of reaching the defense spending target of 2 percent of GDP by 2027 ahead of schedule.

Social security spending will rise to a record 39 trillion yen (US$249.5 billion), driven by rising healthcare costs.

Tax revenues are expected to rise to 83.7 trillion yen (US$535.5 billion).

Government bond issuance to support the budget is expected to be kept at 30 trillion yen (about US$192 billion) to maintain financial stability and avoid exacerbating the heavy public debt burden, which is almost twice the amount of GDP.

The respective budget bill will be submitted to Japan's parliament in early 2026.