Ministry of Finance FY2026 Budget Request Summary
Overview The Ministry of Finance (MOF) has compiled its FY2026 budget request for general account expenditures totaling 34.12 trillion yen, representing an increase of 3.98 trillion yen compared to the previous year.
Key Components
National Debt Service: 32.39 trillion yen (+4.17 trillion yen)
- Debt redemption expenses: 19.31 trillion yen (+1.64 trillion yen)
- Interest and discount charges: 13.04 trillion yen (+2.52 trillion yen)
- This significant increase reflects rising interest rates and growing debt obligations
Economic Cooperation: 106.7 billion yen (+21.3 billion yen)
- JICA loan assistance: 54 billion yen (+3.5 billion yen) for infrastructure development and global health systems in developing countries
- International financial institution contributions: 52.8 billion yen (+17.8 billion yen) for World Bank, ADB, and IMF technical assistance programs
SME Support: 76.6 billion yen (+16.6 billion yen)
- Japan Policy Finance Corporation subsidies: 16.6 billion yen (+2.7 billion yen) for enhanced SME lending
- Capital injection: 60 billion yen (+13.9 billion yen) to strengthen credit guarantee capabilities
Administrative Expenses
- Customs border control enhancement: 14.6 billion yen (+2.2 billion yen) for combating drug smuggling, illegal weapons, and terrorism-related materials
- Sake industry promotion: 3.7 billion yen (+1.5 billion yen) for export promotion and traditional brewing preservation
Strategic Priorities The budget emphasizes strengthening Japan's economic security, supporting international development cooperation, and enhancing domestic SME competitiveness while managing substantial debt service obligations in a rising interest rate environment.