Japan’s ministries and agencies submitted a record budget request of about ¥143 trillion for the next fiscal year, putting Prime Minister Sanae Takaichi’s fiscal agenda under sharper scrutiny as government bond yields climb. Media tallies of submissions from 18 ministries and agencies showed the Ministry of Economy, Trade and Industry sought more than five times its request from a year earlier, while ministries overseeing defense and social security also made record requests. The market is now watching how much the Takaichi government ultimately plans to spend and how it will fund the outlays. Concerns over Japan’s fiscal outlook have been one factor weighing on the bond market, with the benchmark 10-year Japanese government bond yield rising to 3% on Tuesday for the first time since 1996. Growth Strategy Minister Minoru Kiuchi said the government is reforming budget compilation and argued fiscal 2027 requests should be compared with the combined scale of the fiscal 2025 supplementary budget and the fiscal 2026 initial budget, reflecting Takaichi’s push to reduce reliance on supplementary budgets.