With a record spending of 114.38 trillion yen (about $870 billion), with military spending skyrocketing, Japan’s parliament has approved the draft budget deficit for the next fiscal year (starting April 2023). In this respect informs Kyodo agency.
The publication pointed out that the main reason for the increase in budget volumes will be the planned increase in defense expenditures. In fiscal year 2023, it will be 6.8 trillion yen (about $51.8 billion), which is 1.25 times more than this year. At the same time, defense expenditures may exceed 1% of GDP, which was previously the limit for this expenditure item.
Tax revenues could also break all records and exceed 69.44 trillion yen (about $529 billion), according to the agency. The total budget deficit will be 35.62 trillion yen ($271 billion). In addition, the deficit will be closed by the issuance of new bonds.
Kyodo added that the increase in military spending is a necessary measure as part of the implementation of plans to strengthen defense capabilities. Unrest has increased in the country, especially due to the development of North Korea’s nuclear missile program, the strengthening of China’s power, and the situation in Ukraine.
On March 8, Kyodo agency, based on statistics from the country’s Ministry of Finance (MinFin). reportedIn January of this year, Japan’s trade deficit reached a record high of 1.98 trillion yen or $14 billion, one of the main reasons for this dynamic was the rising prices of various types of energy due to the intensification of global energy trade. crisis.