On August 8, the Japanese government approved new budget request rules for ministries for the 2026 fiscal year.
Ministries will now be allowed to request a 20% increase in “discretionary spending” compared to the 2025 budget’s ¥14.3 trillion total. This money can be used for purposes each ministry decides, with the aim of supporting key policies like measures against rising prices.
The previous rule let ministries cut discretionary spending by 10% and then request up to three times the cut amount in a special budget slot. That system is now scrapped.
Finance Minister Kato said the change reflects the need for budget requests that better match current realities, such as inflation.
Separately, social security costs like pensions and healthcare are expected to naturally rise by ¥400 billion due to population aging. Additional funds, such as for wage hikes in medical and nursing care fields, will be decided by year-end.
by MagazineKey4532