Japan budget demands hit record as BOJ tweaks raise borrowing costs -sources

Japan's budget demands will hit a record, exceeding 112 trillion yen ($767 billion), for the current fiscal year, sources told Reuters, as rising interest rates add to debt-servicing costs and military and social security spending rises. The government is saddled with the industrial world's heaviest debt at more than twice the size of its economy, adding to the urgency for Tokyo to shift from crisis-mode fiscal stimulus. Budget demands for the fiscal year ending March 2025 have grown due to higher military outlays, as Japan seeks to counter geopolitical risks in the region from China and North Korea, and to fund bulging social security costs for a rapidly ageing population.