Be alert! Japan proposes a record defense budget of 122.4 trillion yen, aiming to accelerate military expansion.

The Japanese Ministry of Finance announced on September 3 that, affected by factors such as rising prices, the expansion of defense spending, and the increase in debt financing costs, the total budget application for the various departments of Japan for the 2025 fiscal year has reached a record high of 122.4 trillion yen, a significant increase compared to the 2025 fiscal year. Japanese media reported that this is the third consecutive year that the budget application amount has hit a historic high. According to the Nikkei newspaper, the three ministries with significantly increased budget applications for the new fiscal year are the Ministry of Finance, the Ministry of Health, Labor and Welfare, and the Ministry of Defense. The largest expenditure will come from the Ministry of Health, Labor and Welfare, which has applied for a budget of 34.8 trillion yen considering the increase in medical and pension costs due to the aging population. In addition, as a result of the Bank of Japan's interest rate hike and the increase in bond yields leading to higher borrowing costs, the debt financing needs for repayment and interest payments by the Ministry of Finance have also reached a historical high of 32.4 trillion yen.