Japan budget requests swell with $78bn in uncapped growth investment

PoliticsRising debt costs, unspecified defense items risk fueling tension over spendingBudget requests by Japanese government agencies for fiscal 2027 reached a record high. (Nikkei montage/Source photos by Nikkei)RIHO NAGAO and SHUNSUKE USHIGOMESeptember 5, 2026 01:15 JSTTOKYO -- Japan's record-breaking budget requests for fiscal 2027 include 12.17 trillion yen ($78 billion) under an uncapped framework for growth investment in areas such as AI and space, adding to concerns about swelling spending fueled by defense and debt servicing costs.