Japan’s Cabinet office approved a record-high budget worth JPY106 trillion for fiscal year (FY) 2021-22 on Monday, Reuters reported, citing a draft of the budget.
Key details
Japan approves new record budgets for the ninth straight year.
New bond issuances will jump JPY11 trillion to JPY43.60 trillion.
41% of the budget will be funded by debt, up from circa 32% this fiscal year.
Japan sets record $52 billion military budget with stealth jets, long-range missiles.
Market reaction
USD/JPY extends its recovery towards 103.50, underpinned by a solid US dollar comeback across the board amid risk-on market mood. The renewed coronavirus concerns overshadowed the US fiscal deal optimism.
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