Japan's Cabinet has approved a budget for fiscal year 2025 totaling a record US$730 billion, including US$55 billion in defense spending. Despite the record spending, the government is optimistic of seeing significant reduction in new debt.
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00:00Japan's cabinet has approved a record budget for its next fiscal year, increasing spending
00:06by 2.6 percent over the current year.
00:10Government debt servicing and social security costs are the main drivers of the proposed
00:14730 billion U.S. dollar budget.
00:18Defense spending would also increase by over 9 percent from the current year to 55 billion
00:24U.S. dollars.
00:25Despite a high level of debt, record high tax revenues would allow Tokyo to issue the
00:31fewest bonds in 17 years.
00:33The budget may face hurdles in the legislature where it would need support from opposition
00:38parties to pass.