Japan’s government approves USD730B draft budget for fiscal year 2025
Date
12/29/2024 3:19:00 AM
(MENAFN) Japan’s government on Friday approved a draft budget for fiscal year 2025, amounting to 115.5 trillion yen (USD730 billion), surpassing the previous record of 114.38 trillion yen set in 2023. This budget reflects the government's growing expenditure on social security and defense, which has raised concerns about the sustainability of Japan's fiscal health. The new budget is a response to the mounting pressure from an aging population and national security concerns.
Approximately a third of the budget, or 38.28 trillion yen, will be allocated to social security, highlighting the challenges posed by Japan's aging population and declining birth rate. This growing demographic issue is expected to continue increasing the financial burden on the government, requiring more resources to care for an elderly population while addressing the needs of a shrinking workforce.
The draft budget will be presented to Japan’s parliament for debate in January. Prime Minister Isiba Shigeru expressed his hope for the budget to be passed swiftly, indicating that he would provide detailed explanations to encourage opposition parties to support the plan. While the government’s focus on social security and defense spending is necessary, the long-term fiscal implications of these increases will likely remain a point of concern for Japan’s economic future.
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