Japan's Cabinet approved on December 27 a record-high 115.54 trillion yen budget plan for fiscal 2025 starting April.

As the population ages, social security costs like healthcare and pensions grew to about 38.28 trillion yen.

Expenses earmarked for drastically strengthening Japan's defense capabilities grew to around 8.67 trillion yen.

S/ Kato Katsunobu, Finance Minister / This is a budget designed to respond accurately to the structural changes our country is facing.

Allocations were doubled for regional revitalization, a top priority for Prime Minister Ishiba Shigeru, to 200 billion yen as well as for establishing the disaster prevention agency.

To realize this budget plan, the government needs record-high tax revenues totaling about 78.44 trillion yen.

As this amount is not enough to cover all expenses, the government will issue new bonds worth around 28.65 trillion yen.

The debt burden will be passed on to younger generations.