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flag Japan passed a record $766 billion budget on April 7, its first in 11 years, driven by defense and welfare spending.

flag Japan passed a record 122.31 trillion yen ($766 billion) budget for fiscal 2026 on April 7, marking the first time in 11 years the budget was not in place at the start of the fiscal year. flag The spending plan, driven by welfare costs and record defense allocations, aims to stimulate growth under Prime Minister Sanae Takaichi. flag However, critics warn the massive budget, funded by heavy borrowing, lacks measures to address rising energy costs from the Middle East conflict and could worsen Japan's already heavy public debt.

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