- Japan’s cabinet approved a record-high budget of $780 billion for the next fiscal year.
- Social security and defense spending are significantly increased to address aging demographics and strengthen national security.
- The budget will be financed by record-high tax revenues and the issuance of new government bonds.

A: Hey Hana! Did you hear about the budget news?

B: No, Ken! What's happening? Big changes?

A: Yeah! It’s a really big budget for next year. Like, a record high! Over 122 trillion yen!

B: Wow! That’s a lot of money! More than last year too?

A: Exactly! It’s more than 7 trillion yen higher! Mostly because of social security. Japan's getting older, you know? Medical costs are up.

B: Oh, right. Makes sense. What else?

A: They’re also increasing defense spending. The government wants to strengthen things.

A: And they’re putting more money into education too, to make high school free!

B: Free high school? That's amazing! So where is all this money coming from?

A: Mostly from taxes. They’re expecting really good corporate earnings. People might even get raises!

B: That’s good news! But… are they borrowing money too?

A: Yep. They’re still planning to issue new bonds. Interest rates are going up, so it's getting more expensive to pay back what they already borrowed.

B: Hmm, a lot to keep track of! When does this actually become law?

A: They’re sending it to the Diet next year. They want to pass it quickly.