Japan to earmark record Y102 trillion for 2020 budget as social security and defense costs rise

Japan Times -- Dec 19

The government has decided to earmark a record ¥102.66 trillion ($938 billion) in the initial draft budget for fiscal 2020, to fund swelling social security and defense outlays, government sources said Wednesday.

The spending plan, which Prime Minister Shinzo Abe’s Cabinet will approve Friday, will top ¥100 trillion for the second consecutive year. The draft budget includes funds for free preschool education as well as record defense spending, partly due to the North Korean nuclear and missile threat.

The government will also allocate around ¥1.8 trillion for steps aimed at shoring up the world’s third-largest economy, including a shopping reward point program for purchases made by holders of My Number national identification cards.