TOKYO: The Japanese government is in the final stages of coordination to set the amount of general-account spending under its fiscal 2024 budget at around 112,070 billion yen, informed sources said Wednesday.

The government is scheduled to adopt a fiscal 2024 budget bill at a cabinet meeting on Friday.

The planned amount is down from the record high of 114,381.2 billion yen, set in fiscal 2023, marking the first decrease in 12 years.

Still, the annual amount is seen topping 110 trillion yen for the second straight year, as debt-serving costs are expected to hit a new record high and social security and defense outlays are also set to rise.

For calculating the cost of paying interest on government debt, the government will raise its assumed interest rate for the first time in 17 years, reflecting an upward trend in long-term government bond yields following the Bank of Japan’s policy adjustments.

The assumed rate will rise to 1.9 percent after remaining at a record low of 1.1 percent for seven consecutive years through fiscal 2023.

JIJI Press