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flag Japan approves $785B 2026 budget, boosting defense and debt amid economic and regional security concerns.

flag Japan has approved a record $785 billion budget for fiscal 2026, driven by Prime Minister Sanae Takaichi’s expansionary economic policy and rising defense spending, which reached $58 billion amid regional security concerns. flag The government plans to issue $29.58 billion in new bonds to cover a revenue shortfall, while debt-servicing costs hit a record $31.28 billion. flag Defense upgrades include long-range missiles, drones, and surveillance systems, with a focus on countering China and North Korea. flag Japan also plans to restart the world’s largest nuclear plant and strengthen critical resource imports. flag Despite economic growth forecasts, the yen weakened due to rising debt and inflation pressures.

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