Japan’s FY27 budget requests top 130 trillion yen as AI, chips and farms gain priority

Japan’s fiscal 2027 budget requests, covering April 2027 through March 2028, have exceeded 130 trillion yen, surpassing the previous record of 122 trillion yen. METI is seeking approximately 7.7 trillion yen, including 4.5 trillion yen for growth investments in artificial intelligence and semiconductors, while the Ministry of Agriculture, Forestry and Fisheries is requesting approximately 3.1 trillion yen, up 35% from the fiscal 2026 initial budget. Its request centers on revamped subsidies to encourage conversion from rice to wheat and soybeans, with related funding expected to exceed the previous year’s approximately 350 billion yen request. The figures are ceilings, not final spending plans, and will be reviewed by the Ministry of Finance before cabinet approval and parliamentary debate. With projected tax revenue of 83 trillion yen and public debt above 200% of GDP, investors will assess how the government balances industrial, agricultural and price-support measures with fiscal restraint.

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