Japan’s ministries and agencies are expected to seek more than ¥130 trillion for fiscal 2027, up from ¥122 trillion in fiscal 2026 and marking a fourth consecutive record high. Prime Minister Sanae Takaichi’s government has removed unified spending caps for priority projects under a new growth investment framework and plans to bring some recurring supplementary-budget spending into the initial budget. METI is seeking more than ¥7.7 trillion, including about ¥4.5 trillion for the Strong and Prosperous Japan Investment Framework and investments in artificial intelligence, semiconductors and robotics. The Defense Ministry plans a record request of approximately ¥8.9 trillion, while social security costs are expected to rise by about ¥390 billion as the population ages. Unpriced item requests, including defense-related proposals, are not yet included in the headline total. With fiscal 2026 tax revenue forecast at roughly ¥83 trillion, the gap could require additional bond issuance. Rising government bond yields are also increasing debt-servicing costs, which are expected to exceed ¥31.3 trillion, adding to concerns over Japan’s fiscal sustainability and the balance between growth-oriented spending and fiscal discipline.