Japan’s government has announced its budget for 2014.

At around 958 billion dollars, it’s Japan’s largest budget ever.

The record-breaking number is partly the result of nearly 300 billion dollars in health care costs for Japan’s aging population, as well as

ballooning childcare subsidies.

Defense spending is also up dramatically, reflecting Prime Minister Shinzo Abe’s aggressive military directives.

The national debt was announced at about 410 billion dollars, down 16 billion dollars from last year.

Even with next year’s sales tax hike, the government expects only about 500 billion dollars in income.

Critics are wondering where the cash to back the ambitious budget will come from and if the spending will be effective.

In related economic news, the Japanese government will not use the word “deflation” in its monthly report for the first time in over four years.

A weaker yen in November increased the cost of imported goods, but analysts are waiting to see if the trend continues before officially announcing

an end to deflation.

Risk factors for the Japanese economy include American fiscal policy and the continuing European debt crisis.