Budget Request Expands with Active Investment
Encouraged by the policy for active investment by Prime Minister Sanae Takaichi, the ministries are making active request for FY2027 budget. It is likely that the total amount of all the requests will exceed 130 trillion yen for the first time. As Takaichi removed limit of budget request from each ministry, a great question remains: How the government can find the resource for the requests. Every ministry makes budget request to the Ministry of Finance (MOF) by the end of August every year. The MOF examines details of the request through the fall and formulate a budget draft in December. The budget plan made by the MOF is submitted to ordinary session of the Diet, which is ordinarily convoked in January, and the budget bill is discussed in both chambers of the Diet. The leading parties make effort to pass the bill by the end of March, because new fiscal year starts in April. The total amount of request in 2025 was 122 trillion yen, marking the record high. But...