The Japanese government has approved a record-breaking budget exceeding 115 trillion yen, equivalent to $730 billion, for the fiscal year beginning in April.
The new budget represents a 2.6% increase from the initial budget for the current year.
This marks the third consecutive year the budget has surpassed 110 trillion yen (approximately $700 billion).
According to the Ministry of Finance, the interest rate is expected to rise to 2.1% in the new fiscal year, up from 1.9% in the current year. This increase will result in higher debt servicing costs due to elevated interest payments.