Japan Eyes USD189.6bn Government Bond Issuance in 2026 Budget

Japan government bond issuance 2026 plans call for about JPY29.6tr (USD189.6bn) of new debt to fund a record JPY122.3tr fiscal budget, according to a draft seen by Reuters, underscoring Prime Minister Sanae Takaichi’s expansionary fiscal stance.

The planned Japan government bond issuance 2026 would exceed this year’s JPY28.6tr and confirms an earlier NHK report.

Tax revenue is forecast to rise to a record JPY83.7tr but remain insufficient as spending on social welfare, defence and debt servicing increases.

The budget follows a JPY21.3tr stimulus package compiled in November to cushion households from rising living costs.

Market concerns over debt supply have pushed Japan’s 30-year government bond yields to a record 3.45%.