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Japan’s fiscal 2026 budget was enacted Tuesday following its approval in the Upper House, the first time in 11 years the spending bill has failed to pass before April 1.
The ¥122.3 trillion budget — a ¥7.1 trillion increase over the previous year — is the largest ever. It reflects Prime Minister Sanae Takaichi’s goal of an expansionary fiscal policy and includes ¥39 trillion for social security expenses, and a ¥760 billion increase overall, a large part of which is a ¥520 billion increase over 2025 in response to the increasing number of elderly.
The new budget adds ¥700 billion for free high school tuition and public elementary school meals. About ¥370 billion will be shared by the national government and the rest by local governments.
