Japanese ministries submitted record fiscal 2027 budget requests totaling 143 trillion yen ($917.85 billion), according to Finance Minister Satsuki Katayama. The latest figure revises an earlier estimate of 143.1 trillion yen ($917.78 billion). Katayama said the government would balance fiscal sustainability with economic growth, while Prime Minister Sanae Takaichi is seeking to reduce reliance on supplementary budgets. The requests are about 2.5 trillion yen above the roughly 141 trillion yen combined total of fiscal 2025’s supplementary budget and this year’s regular spending. A new strategic investment program generated 12.2 trillion yen in requests for artificial intelligence, semiconductors and economic security. Debt-servicing requests reached a record 36.64 trillion yen after the Finance Ministry raised its assumed interest rate to 3.8% from 3.0%, following a rise in the 10-year government bond yield to 3% for the first time since 1996. Takaichi has said the government aims to keep new bond issuance around 40 trillion yen, leaving markets focused on borrowing needs and whether increased spending supports stronger growth.