December 8, 2025

We have prepared a draft supplementary budget for FY2025 in response to “Comprehensive Economic Measures to Build a Strong Japanese Economy,” which was recently approved by the Cabinet.

Before requesting deliberation on the supplementary budget for FY2025, I would like to provide an outline of the draft supplementary budget.

(Introduction)

The Japanese economy is currently in a phase of moderate recovery, but as its potential growth capacity has been sluggish, growth in wages has failed to keep pace with price rises and personal consumption and private demand have continued to lack strength. In addition, although an agreement has been reached in the Japan-U.S. Consultation on U.S. Tariff Measures, there is uncertainty over the future of the global economy.

Based on this recognition, “Comprehensive Economic Measures to Build a Strong Japanese Economy” was approved by the Cabinet on November 21.

With a view to transforming anxiety into confidence, the comprehensive economic measures are designed to promptly address rising prices in order to protect the people’s daily lives and restore the strength of the Japanese economy.

Specifically, the government will carry out the following initiatives:
First, as an initiative to ensure security in the people’s daily lives, the government will place the top priority on addressing the recent rising prices in order to protect households and workplaces from rising prices. Second, the government will realize a strong economy through strategic investments that enhance resilience against potential crises and growth-oriented investments. Third, the government will build a Strong Japan that safeguards the safety and prosperity of the people by strengthening Japan’s defense capability and diplomatic power.

(Summary of the FY2025 supplementary budget)

Next, I would like to outline the FY2025 supplementary budget, which was submitted to the Diet mainly for implementing the comprehensive economic measures.

Regarding the general account, we are asking for approximately 18.3 trillion yen in terms of expenditures.

As for the details, based on the comprehensive economic measures, budget funds will be appropriate as follows: approximately 8.90 trillion yen for expenses related to ensuring security in people’s daily lives and measures to address rising prices; approximately 6.43 trillion yen for expenses related to building a strong economy through strategic investments that enhance resilience against potential crises and growth-oriented investment; approximately 1.66 trillion yen for expenses related to strengthening defense capability and diplomatic power; and approximately 710 billion yen as reserves for future emergencies.

Furthermore, we will allocate approximately 1.13 trillion yen as a transfer to the Special Account for the National Debt Consolidation Fund and approximately 660 billion yen as other expenses while reducing the existing expenditure by approximately 1.20 trillion yen.

In terms of revenue, tax revenues are expected to increase by approximately 2.88 trillion yen, considering the recent tax collection and other factors. In addition, we anticipate an increase of approximately 1.02 trillion yen in non-tax revenues and a surplus of approximately 2.71 trillion yen from the previous fiscal year.

As for the revenue shortfall that will arise despite the above expectations, we will issue public bonds worth approximately 11.70 trillion yen.

As a result, the total general account budget for FY2025, after the supplement, will be approximately 133.50 trillion yen, which is an increase of approximately 18.30 trillion yen in both revenue and expenditure.

The amount of public bonds issued in FY2025 in the general account after the supplement will be approximately 40.34 trillion yen, lower than the amount of public bonds issued in FY2024 in the general account after the supplement, which was approximately 42.14 trillion yen, reflecting the consideration given to fiscal sustainability.

Also, necessary supplementary measures were made to the special account budget.

Regarding the fiscal investment and loan program, based on the comprehensive economic measures, approximately 4.48 trillion yen have been added to promote initiatives such as ensuring security in people’s daily lives and addressing rising prices and strengthening defense capability and diplomatic power.

(Conclusion)

This concludes my explanation of the outline of the supplementary budget for FY2025.

The Japanese economy is at a juncture of whether or not it can transition to a growth-oriented economy entailing the expansion of investment for growth and productivity improvement. In order to protect the people’s daily lives and ensure the restoration of a strong economy in which everyone can have hope, it is necessary to enact the supplementary budget as soon as possible.

I hereby request that the Diet deliberate on the supplementary budget and promptly give its approval.