In budget, Takaichi touts responsibility but details tell different story

key takeaways

• The Takaichi government approved a JPY 122.3tn draft budget for FY2026 on Friday, 26 December.
• The prime minister hailed efforts to keep new debt issuance in the initial budget below JPY 30tn, but the substance of the budget suggest that a ratchet effect could be at work in several priority areas, belying Takaichi’s claims of “responsible” fiscal expansion.