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Japan approves record budget of $1 trillion for next fiscal year 2021

The land of rising sun Japan has approved a record budget of $1 trillion for the fiscal year 2021. The cabinet sanctioned the budget as Prime Minister Yoshihide Suga’s government focus on boosting up the economy in the pandemic ridden economy.

To ensure the coronavirus-stricken economy gets back to its rail, the government is aiming to have smooth transactions into the post-covid-economy next year. The budget boosts the overall spending for fiscal 2020 to exceed 3.8 % to 106.6 trillion yen ($1 trillion) starting next April confirmed by Finance Ministry on Monday. There is a widespread fear of a downturn in Japan's fiscal health as the country's fiscal health is worst among developed nations.

The cabinet approval comes as the country has seen record numbers of new virus cases since mid-November. The capital Tokyo witnessed a massive surge in cases as it recorded 700 people infected by the coronavirus.

Japan's cabinet outlays on social security as it will account near 54% of spending outside of debt servicing and transfers to regional governments according to a Bloomberg report. The new debt issuance for the current fiscal year will hit a record high of over ¥112 for the country, more than double the previous record of ¥51.95 trillion marked in the fiscal year 2009 onset of the global financial crisis.