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(Japan's 2027 budget proposal: 130 trillion yen)
An increase of 7.6 trillion yen from 122.3 trillion yen in '26.
However, 3.6 trillion yen of that is due to rising interest costs.
Every year, half of the budget increase goes toward government debt interest.
It is a structure where government debt is increased just to pay off interest.
Recently, 10-year government bond yields have surged to 3%.
(Previously in the 1% range)
Meanwhile, Japan's government bond yields are rising at an unprecedented rate.
This means interest costs will continue to climb.
For reference, Japan's debt-to-GDP ratio is 210%,
which is among the highest in the world.
(USA 110%, Germany 90%, South Korea 50%)