REUTERS
The Japanese government approved Thursday a record-high 96.72 trillion yen ($799 billion) budget for fiscal 2016, focusing on welfare measures to tackle a rapidly aging society while trying to restore fiscal health, according to Nikkei Asian Review business publication.
The general-account budget for the fiscal year starting next April also features increased expenditure on defense and official development assistance, reflecting Abe's intention to expand the country's security and diplomatic presence, according to the report.
Japan's defense budget for the next fiscal year will hit an all-time record of 5.05 trillion yen (over $41 billion). Since the start of Prime Minister Shinzo Abe's second administration in 2012, it will be the fourth consecutive annual increase in Japanese defense spending.
Read alsoUkraine, Japan sign $300 mln credit agreementSocial security expenses are projected to grow to a record 31.97 trillion yen, accounting for more than 40% of policy-related spending. The focus will be placed on improving children's health care and tackling Japan's ageing population issue.
The government plans to submit the draft budget for fiscal 2016 to the Diet session to be convened January 4 and seek its enactment by the end of March.