The Cabinet approved Friday a record ¥102.66 trillion ($938 billion) draft budget for fiscal 2020 amid growing social security spending to support Japan's aging population, fueling concerns that the country will continue to face difficulty achieving fiscal consolidation.
It is the eighth straight year that the world's third-largest economy has compiled a record initial general account budget, also reflecting a rise in defense outlays as Tokyo aims to enhance capabilities in new areas such as space and cyberspace.
The spending plan for the year starting next April topped ¥100 trillion for the second consecutive year on ballooning medical, public pension and other social security costs. The government will widen the scope of free education.