Japan's Record Budget for Fiscal Year

TOKYO (Reuters) – Japan's government is in final talks to compile a record over 115 trillion yen ($732 billion) general account budget for the fiscal year starting in April, according to Jiji news agency on Wednesday.

The initial budget is expected to exceed 110 trillion yen for the third consecutive year, surpassing both last year's and 2023's amounts, thus setting it at a record high, as reported by public broadcaster NHK.

In September, the government made a record budget request as the Bank of Japan begins to move away from its decade-long stimulus program.

The assumed interest rate is expected to rise to 2.1% for the year starting in April, up from the current year's 1.9%, which will increase debt-servicing costs related to interest payments and debt redemption, according to the finance ministry.

($1 = 157.1100 yen)