Record 140 trillion yen budget requests put Takaichi administration's 'first year of proactive fiscal policy' to the test

Fiscal 2027 budget requests reach record ~140 trillion yen; over 10 trillion yen for 'uncapped' investment framework Budget requests for fiscal 2027, the first full budget compilation under the Takaichi administration, were submitted by the deadline on the 31st, with the total general-account spending expected to be around 140 trillion yen, a record high. More than 10 trillion yen in requests from ministries and agencies were made under the newly established 'Strong and Prosperous Japan' investment framework. The Finance Ministry explains that it is "not a loophole," but rising spending pressure and maintaining fiscal discipline remain challenges. 12

Centrists, CDP, Komeito formally abandon merger; Centrists to split The leaders of the Centrist Reform Alliance, the Constitutional Democratic Party, and Komeito formally confirmed at a meeting on the 31st that they would abandon the merger. The Centrists plan to split into a group of 21 former CDP members and 28 former Komeito members, and leader Junya Ogawa said he aims to form a unified parliamentary group in the House of Representatives. The Centrists, which sought to create an axis of opposition to the Takaichi administration, are now heading toward de facto dissolution about seven months after its founding. 345

Defense Ministry makes record 8.9 trillion yen budget request, including submarine-launched hypersonic missile development The Defense Ministry requested approximately 8.9 trillion yen (about $56 billion) in its fiscal 2027 budget request, a record high. This is the final year of the five-year defense buildup plan totaling 43 trillion yen, and the request is built on three pillars: responding to "new ways of fighting" using AI and drones, ensuring sustainability for prolonged combat, and strengthening the defense industrial base. The figure could grow further following the revision of the three security documents at the end of the year. 6

Foreign Ministry makes first-ever 1 trillion yen-plus budget request, record 1.2 trillion yen The Foreign Ministry announced on the 31st that it had set aside 1.2165 trillion yen in its budget request for the fiscal 2027 initial budget. This is the first time the request has exceeded 1 trillion yen. In addition to increased contributions to international organizations due to the weak yen, the ministry is calling for the "creation of a security environment favorable to Japan" (157.6 billion yen), including stabilizing sea lanes and supporting like-minded countries in developing nautical charts, and will strengthen security-related ODA. 7

Shin-Meishin crash that killed 6: tearful apology from defendant, but families say 'no sign of remorse' A trial opened on the 31st at the Tsu District Court for defendant Mizutani Mizutoyo (55), who was charged with negligent driving resulting in death for driving while watching TikTok videos on a smartphone and rear-ending a passenger car on the Shin-Meishin Expressway in Kameyama, Mie Prefecture, in March, killing six people. The defendant apologized in tears, but the bereaved family angrily said at a press conference, "We cannot feel any remorse at all." 89

Three junior high and high school students drown on coast in Ichikikushikino, Kagoshima; city holds emergency press conference On the 28th, on the coast near Terushima in Ichikikushikino, Kagoshima Prefecture, four of five junior high and high school students who had come fishing were swept away by waves. One 12-year-old was rescued, but three students aged 17, 14, and 13 drowned. They are believed to have jumped in one after another to help, and the city announced at an emergency press conference on the 31st that it would thoroughly publicize the dangers. 10

Large fire on Meirin shopping street near Ise Jingu; street in front of station almost entirely burned down A large fire broke out on the 31st on the Meirin shopping street near Ise Jingu (Geku) in Ise, Mie Prefecture, causing buildings to collapse and leaving only their frames exposed. The shopping street near Kintetsu Ujiyamada Station said, "The street in front of the station has almost completely burned," and evacuation was urged for the surrounding area. 11

Wagashi shop owner killed in Mine, Yamaguchi; wife injured; police investigate 'tokuryu' On the 28th, the owner of the long-established Japanese confectionery shop "Saito Seika" in Mine, Yamaguchi Prefecture, Kazumasa Saito (80), was found murdered, and his wife also suffered serious injuries including a fractured skull. Since no proceeds from sales were stolen and there were no signs of broken windows, police believe it is highly likely that a third party, such as an anonymous and fluid criminal group known as "Tokuryu," was responsible, and they are investigating. 12

56 people develop norovirus food poisoning after eating nigiri sushi at Toyama hotel Fifty-six men and women who ate nigiri sushi served at a hotel in Toyama developed mass food poisoning caused by norovirus. On the 31st, the city of Toyama ordered the sushi restaurant "Sakae Sushi," which had prepared the sushi, to suspend its business for three days. No one was hospitalized, and all are said to be recovering. 13