Japan’s budget requests for fiscal 2027 are projected to reach a new high of about 143 trillion yen ($890 billion), according to a Kyodo News tally released Monday. Prime Minister Sanae Takaichi is seeking to support economic growth through fiscal spending, while inflation is expected to raise the government’s debt-servicing costs. Financial markets remain cautious about the Takaichi government’s "responsible and proactive" spending plans because they could further weaken Japan’s fiscal position, already described as the worst among advanced economies, and trigger another sell-off in the yen and Japanese government bonds (government debt securities).