Photo/Illutration The Finance Ministry building (Asahi Shimbun file photo)

Increased defense spending is expected to balloon the general account of the draft budget for fiscal 2023 to about 114 trillion yen ($837.3 billion), the 11th straight record high for an initial budget, government sources said.

The Cabinet will approve the budget at a meeting as early as Dec. 23, according to the sources.

It will be the fifth consecutive year for an initial budget to exceed 100 trillion yen, including the 107.6 trillion yen allotted for this fiscal year.

Defense costs, which include expenses related to the realignment of U.S. forces in Japan, will be about 6.8 trillion yen, a record high and about 1.25 times the figure for fiscal 2022.

The government on Dec. 16 decided that defense spending over the next five years will increase to about 43 trillion yen, 1.5 times the current level.

The government will establish a special fund to save nontax revenue—such as sales of state-owned properties and surplus funds from special accounts--as a financial resource to strengthen defense over multiple fiscal years.

In fiscal 2023, 4.6 trillion yen is expected to be allocated to the fund, which will contribute to the ballooning of the budget.

Social security expenses, which account for about one-third of general account expenditures, will rise by 560 billion yen mainly to deal with the natural increase in the aging population.

Revenue generated through taxes is expected to grow because of solid corporate performances and rising prices.

Tax revenue for fiscal 2023 is expected to exceed the 65.2 trillion yen expected in the current fiscal year, which is the highest ever. 

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