TOKYO, Dec. 22 (Xinhua) -- The Japanese government will compile a draft budget for fiscal 2022 worth some 107.6 trillion yen (941 billion U.S. dollars), a record high for the 10th consecutive year, government officials said Wednesday.
The government plans to prepare more than 100 trillion yen (875 billion dollars) for general account spending for the fiscal 2022 starting in April, Kyodo News reported citing government officials.
The general account expenditures will expand and top the 100 trillion yen (875 billion dollars) threshold for the fourth consecutive year, due to swelling social security costs and defense expenditures, according to the officials.
Another 5 trillion yen (43.7 billion dollars) will be added to the reserve funds for future responses to the COVID-19 pandemic.
The estimated sum for fiscal 2022 will exceed the 106.61 trillion yen (933 billion dollars) for the fiscal 2021 initial budget, which also included 5 trillion yen (43.7 billion dollars) virus reserve funds.
New government bonds of less than 40 trillion yen (350 billion dollars) will likely be issued for the budget, down from 43.60 trillion yen (381 billion dollars) for the fiscal 2021 initial budget, the officials said.
Social security costs, which have accounted for about one third of Japan's initial budget in recent years, will increase by several hundred billion yen from fiscal 2021 against the backdrop of the country's aging population, according to officials.
Defense spending may stand at a record 5.4 trillion yen (47 billion dollars), the officials said.
The budget was drafted on the assumption that the government's tax revenue will reach a record high of about 65 trillion yen (569 billion dollars), up from an estimated 63.88 trillion yen (559 billion dollars) this year, according to the officials.
The tax revenue for fiscal 2021 was originally expected at 57.45 trillion yen (503 billion dollars), but was revised upward by 6.43 trillion yen (56 billion dollars) earlier this month.
Kishida's cabinet is projected to approve the draft budget on Friday.
