Japan Cabinet Approves Record Fy2019 Budget Plan

Japan cabinet approves record FY2019 budget plan

Japan's Cabinet has approved a plan for record government spending for the year starting in April.

The budget amounts to more than 101 trillion yen, or about 900 billion dollars. The increase is partly the result of efforts to ease the effects of a consumption tax hike scheduled for next October.

A record of more than 300 billion dollars will be allocated to social security spending. While much of that increase reflects the graying of Japanese society, some will go to cover the cost of providing free preschool education.

Defense spending will also hit a new high, at about 47 billion dollars. This includes the cost for introducing the Aegis Ashore missile defense system.

Taxation is expected to bring in a record 560 billion dollars, due in part to the planned tax increase.

Newly issued government bonds are expected to generate about 290 billion dollars, or about one-third of the total revenue. The government plans to submit the draft to the Diet in early January.