Japan FY2026 Budget — Interactive Overview

Ministry of Finance · Enacted Budget · FY2026 (令和8年度)

Japan's ¥122.3 trillion budget, in detail.

The Cabinet's FY2026 general account budget reaches a record ¥122.3 trillion ($815 B) — up ¥7.1 trillion ($47 B) from FY2025. Driven by surging interest payments, social security growth, and new free-education programs, it is funded by record tax revenue while keeping new bond issuance below ¥30 trillion for the second straight year.

All USD figures use ¥150 = $1 (approx. spot rate)

Total Budget

¥122.31 tn

≈ $815.4 B

+¥7.11 tn ($47.4 B) vs FY2025

Tax Revenue

¥83.74 tn

≈ $558.2 B

+¥5.92 tn ($39.4 B) — record high

New Bond Issuance

¥29.58 tn

≈ $197.2 B

Bond dependency 24.2%

Debt Service

¥31.28 tn

≈ $208.5 B

+¥3.06 tn ($20.4 B)

Where it comes from · Where it goes

Click a chip below each chart to highlight a category

Revenue · ¥122.3 tn ($815 B)

How the FY2026 budget is funded

Click a category below to see details

Expenditure · ¥122.3 tn ($815 B)

Where the FY2026 budget is allocated

Click a category below to see details

Year-over-year change

Expenditure breakdown comparing FY2025 vs FY2026

Key spending initiatives

Highlights from the FY2026 policy package

Defense Build-up

¥8.81 tn

≈ $58.7 B

Year 4 of the Defense Buildup Plan. Unmanned assets, personnel reform. +¥0.33 tn ($2.2 B)

Children & Childcare

¥3.20 tn

≈ $21.3 B

Acceleration plan toward ¥3.6 tn by FY2028. Universal childcare, pension exemption for parents. +¥0.20 tn ($1.3 B)

Free Education

¥0.70 tn

≈ $4.7 B

High school tuition fully free (¥457k cap) + public elementary school lunches (¥5,200/mo per child).

Green Transformation

¥0.70 tn

≈ $4.7 B

Special account funding ¥20 tn front-loaded investment toward 10-year ¥150 tn public-private GX push.

Semiconductors / AI

¥1.20 tn

≈ $8.0 B

Per the AI/semiconductor framework targeting ¥10 tn+ in public support by FY2030. +¥0.90 tn ($6.0 B)

Medical Fee Revision

+3.09%

2-year average

Includes 3.2% base wage rise for healthcare workers, food/utility cost adjustments.

Half a century of fiscal history

Total spending vs tax revenue, 1975 → 2026

Debt service · the fastest-growing line item

Interest payments & principal redemption, FY2010 → FY2026

¥31.28 trillion ($208.5 B) in FY2026 — 25.6% of the budget. Interest payments alone surge to ¥13.0 tn as the assumed rate moves 2.0% → 3.0%.

For more insights like this on Japan politics and public policy, be sure to subscribe to our newsletter.

Subscribe