The Japanese government has approved the highest budget in history for the upcoming fiscal year. The total amount of this budget approved in Tokyo on Friday is 122.3 trillion yen, which is equivalent to about 95 lakh 57 thousand 345 taka in Bangladeshi currency. This budget for the fiscal year starting from April 2026 has allocated large sums of money for defense spending and social security. The authorities have said that the main goal of the government is to manage the long-standing inflationary pressure.

The most talked about aspect of the budget is the record allocation for the defense sector. The government led by Prime Minister Sanae Takaichi has allocated 9 trillion yen for defense, which is the highest in Japan’s history. This initiative is to strengthen military capabilities against the backdrop of deteriorating relations with China. Defense Minister Shinjiro Koizumi said that Japan is now facing the most complex and difficult security situation since World War II. According to him, this budget has been formulated to meet minimum needs.

Japan has been gradually moving away from its strict pacifist stance for several years. The move to build a ‘counterstrike’ capability and raise military spending to 2 percent of gross domestic product (GDP) is part of that. The new budget includes 100 billion yen for a coastal defense system called ‘Shield’, which plans to use drones to deter potential aggression.

However, market concerns are also growing about this large budget. Japan’s government debt has already reached about 233 percent of GDP, the highest among major economies. The yen has depreciated and government bond interest rates have risen since the budget was announced. Analysts warn that further increases in spending could exacerbate financial market volatility.

The government says the budget is designed to ensure people’s safety, healthcare, education and employment. However, the budget has not yet been passed by parliament. It will take effect once it is approved by parliament.