Japan's 2019 Budget Could Reach Record $918b
The Japanese Finance Ministry is still in the process of finalizing the figure for next fiscal year, starting in April. Aging population and defense challenges from China and North Korea will possible influence Japan’s 2019 budget plan. Japan's aging society puts constant upward pressure on welfare and healthcare spending.
Taro Aso (Japanese Finance Minister) said that initial budget requests for fiscal 2019 would likely reach a record high around 102 trillion yen ($918 billion). "An expected increase in welfare spending is a big factor behind next fiscal year's budget request," Aso said.
The Japan’s government plans to raise the 8% consumption tax to 10% in October 2019 and soften the impact with stimulus measures. But funding for the stimulus will not be included in the budget requests, making it likely that the largest-ever draft budget will be compiled.