TOKYO, Dec 25 (Reuters) – Japanese Prime Minister Sanae Takaichi sought on Thursday to ease market concerns over the country’s mounting debt burden, saying her government’s draft budget for next fiscal year maintains fiscal discipline.
The draft budget for the year starting in April, to be submitted to parliament early next year, will total 122.3 trillion yen ($785.4 billion), Takaichi told ruling coalition executives.
Despite the record size, new government bond issuance will be held at 29.6 trillion yen, staying below 30 trillion yen for a second straight year, she said.
The reliance on debt will fall to 24.2% from 24.9% in the initial fiscal 2025 budget, which dipped below 30% for the first time in 27 years, she said.
“We believe this draft budget strikes a balance between fiscal discipline and achieving a strong economy while ensuring fiscal sustainability,” Takaichi said.
($1 = 155.7200 yen)
(Reporting by Makiko Yamazaki; Editing by William Mallard)
