It was learned that the sum of FY19 budget requests submitted by the ministries to the Finance Ministry by the end of August is 102.7658 trillion yen, which tops the record set in FY16 at 102.4099 trillion yen. Requests for “special account” expenditures giving priority to the Abe administration’s key policies also add up to a record 4.3 trillion yen, or 460 billion yen more than FY18. There is now a possibility that the general account expenditures may top 100 trillion yen for the first time.
The Finance Ministry will announce the details on Sept. 7. Requests for policy spending, excluding the servicing of government bonds, increased by 1.3% over FY18 to 78.1784 trillion yen, which include an increase of 1.3% in subsidies to the local governments to 15.8111 trillion yen. Interest payments for government bonds will increase for the first time in three years by 3.2% to 24.5874 trillion yen.
Under the rules for budget requests in FY19, a special account for the “promotion of priority spending for a new Japan” was increased by 10% from FY18, enabling ministries to make requests for up to 4.4 trillion yen, and they have indeed made requests close to the maximum limit. This will be the fifth consecutive year for budget requests to exceed 100 trillion yen.