In a recent development, the Kishida Cabinet has given the nod to a draft budget for fiscal year 2024, totaling approximately 112 trillion yen, equivalent to about 789 billion dollars. Prime Minister Kishida Fumio’s Cabinet officially approved the bill on Friday evening, emphasizing its focus on addressing pressing issues and bolstering the nation’s economy.

A significant portion, more than 30% of the total budget, has been allocated to address social security costs, a move in response to Japan’s aging population and declining birthrate. This allocation represents an increase of 6 billion dollars compared to the previous fiscal year’s budget.

Among the key measures is the expansion of Japan’s child allowance program, slated to take effect in December of the upcoming year. The expansion aims to include all children up to 18 years old, with no income cap. Notably, this marks a departure from the current policy, where allowances are provided only until the completion of junior high school. Additionally, households with three or more children will no longer face an income cap for a program supporting university tuition and entrance fees.

The estimated total tax revenue in the fiscal 2024 budget remains consistent with the figures from the previous fiscal year. To cover a revenue shortfall of approximately 246 billion dollars, the government plans to issue sovereign bonds. As a result, the total value of outstanding Japanese government bonds by the end of the next fiscal year is expected to surpass 7.7 trillion dollars.

The draft budget is scheduled to be presented during the regular Diet session next year, as fiscal year 2024 commences in April. This comprehensive fiscal plan reflects the government’s commitment to addressing societal challenges and fostering economic growth.