The Japanese cabinet approves a record-breaking budget while limiting the issuance of new debt.

Jinshi data, December 27 news, the Japanese Cabinet on Friday approved a record $730 billion budget for the fiscal year starting in April, while limiting new bond issuance to the lowest level in 17 years due to record high tax revenues. The fiscal year budget starting in April is expected to be 115.5 trillion yen (7323.6 billion U.S. dollars), a rise of 2.6% from the initial 112.6 trillion yen of this fiscal year, mainly affected by debt repayment and social security costs. However, record tax revenues may help to reduce the new bond issuance to 28.6 trillion yen, the lowest level since 2008. Therefore, the debt dependency ratio will reach 24.8%, meaning that new bond sales will account for one-fourth of the budget. This is the first time since 1998 that it has fallen below 30%.