Japan approves record $785 billion budget as Takaichi balances spending and debt

Japan's cabinet approved a record $785 billion budget for the next fiscal year, aiming to balance increased spending with limited new bond issuance. Tax revenues are expected to rise 7.6 percent, but higher debt-servicing, social welfare, and defense costs will still increase fiscal pressures. Prime Minister Takaichi plans to replace the annual primary budget balance target with a multi-year fiscal consolidation goal for more flexible spending.