Japan faces $63bn fiscal shortfall for food tax cut, defense buildup

PoliticsTakaichi government looks to tax revenue growth, foreign exchange surplusJapanese Prime Minister Sanae Takaichi has pushed for an expansionary fiscal stance, but her government has not clarified where some of the funding will come from. (Photo by Ken Suzuki)RYO NEMOTO and RIHO NAGAOAugust 22, 2026 05:27 JSTTOKYO -- Japan's total budget requests for fiscal 2027 are projected to far exceed the previous year's level, pushed up by a tax cut on food and a defense spending increase, likely prompting a government scramble for more than 10 trillion yen ($62.9 billion) in additional funding.