Japan's Cabinet approved on Monday a largest-ever 106.61 trillion yen ($1.03 trillion) draft budget for fiscal 2021, as the country grapples with the coronavirus pandemic, its rapidly aging society and new security challenges. According to Kyodo news agency, Japan's budget is growing for the ninth consecutive year. The budget increase is provided by collection of taxes and sale of securities, however it is noted that 40.9 percent of the budget will be funded by debt, compared with 31.7 percent in the current year. Among the policy spending, 5 trillion yen will be set aside for reserve funds for future response to the global health crisis. The funds can be spent without a breakdown of expenditures and further Diet approval. Japan's defense budget will total around 5.34 trillion yen, up 0.5 percent from a year earlier to hit a record high for the seventh straight year, as it increases efforts to beef up capabilities in new domains such as cyberspace and outer space. Growing for the ninth successive year, the defense budget also included 33.5 billion yen for the development of Japan-made standoff missiles capable of attacking enemy vessels from outside their firing range.
