Japan aims to hold new government bond issuance for its fiscal 2027 budget at around 40 trillion yen ($251 billion), Prime Minister Sanae Takaichi said in an interview with the Yomiuri newspaper. The target matches issuance in the fiscal 2025 budget but exceeds the 32.7 trillion yen planned for fiscal 2026. Government ministries and agencies are expected to submit record budget requests exceeding 130 trillion yen for a fourth consecutive year. Takaichi said the government could also tap foreign exchange reserves (funds held to support currency policy) to help finance a planned cut in the consumption tax on food, which would create an annual revenue shortfall of roughly 5 trillion yen. Daiwa Securities chief economist Toru Suehiro said the target could be viewed as somewhat expansionary if it refers to roughly 40.3 trillion yen in issuance after the fiscal 2025 budget.