Japan Approves Record $785 Billion Budget, Vows Debt Control

• Japan's cabinet approved a record $785 billion (122.3 trillion yen) budget for the next fiscal year, starting April.
• Prime Minister Sanae Takaichi aims to balance proactive fiscal policy with debt concerns by limiting new bond issuance.
• New government bond issuance will slightly increase, but the debt dependence ratio will fall to 24.2%, lowest since 1998.
• Higher tax revenues (up 7.6% to 83.7 trillion yen) will help fund increased spending, despite surging debt-servicing costs.
• Debt-servicing costs jump 10.8% to 31.3 trillion yen, with the assumed interest rate at a 29-year high of 3.0%.

Why It Matters: Japan approves record budget while aiming to manage its high debt burden amid rising borrowing costs.