Japan has announced plans to issue nearly USD60bn in bonds to support the government’s USD118.7bn economic relief package, which aims to mitigate the impact of burgeoning living costs. This additional bond issuance will increase the annual government bond issuance to 44.5 trillion yen. The relief package includes temporary tax reductions but has sparked concerns about worsening Japan's fiscal health and potentially hindering the government's goal of a balanced primary budget by March 2026. The debt-dependency ratio could rise to 35%. With Japan already holding the highest public debt relative to its economy among industrial nations, Prime Minister Fumio Kishida faces the challenge of urgent fiscal reform.