The Upper House of Japan's Diet has approved the largest-ever budget for the fiscal year that begins in April.

The fiscal 2023 general-account budget of some 114 trillion yen, or about 870 billion dollars, is the first to surpass the 110 trillion-yen mark.

It includes funding to address inflation and strengthen the country's defense capabilities.

More than one-third of the total revenue will be covered by government bonds.

The Upper House plenary session debated on the draft on Tuesday after it passed the chamber's Budget Committee.

The main governing Liberal Democratic Party's Takahashi Harumi said the draft budget underscores the government's determination to promote policies to tackle the alarming drop in the country's birthrate by creating a society where people can get married, have children and raise them with peace of mind.

In 2022, the number of babies born in Japan fell below 800,000 for the first time since record-keeping began more than 120 years ago.

She said it also shows the government's resolve to protect Japan and its people in an unprecedentedly harsh security environment.

Murata Kyoko of the main opposition Constitutional Democratic Party noted that while the defense budget has been increased, funding for small and mid-sized businesses, as well as the agricultural, forestry and fisheries industries, has been cut from the previous fiscal year.

She said the prime minister has declared publicly he would double funding for children, but he did not reveal specific measures in Diet deliberations and the area of the budget to be doubled remains unclear.

The draft was enacted by a majority vote with support from the LDP and its coalition partner Komeito.