TOKYO (Bernama-Kyodo): Japan's total debt rose to a record 1,342.17 trillion yen (US$8.6 trillion) at the end of 2025, Finance Ministry data showed Tuesday, as Prime Minister Sanae Takaichi's pledge to expand fiscal spending cast doubt over the outlook for the country's fiscal health.
Kyodo News reported that Japan's total debt, up 24.54 trillion yen from a year earlier, is more than twice the size of its economy and faces upward pressure due to ballooning social security, national defense and debt-servicing costs, reflecting higher government bond yields in tandem with increases in long-term interest rates.
As of the end of December, the state's debt consisted of 1,197.64 trillion yen in government bonds, 44.13 trillion yen in borrowing and 100.40 trillion yen in financing bills, according to the ministry.
Long-term borrowing costs have been trending higher amid market expectations that the Bank of Japan will continue raising interest rates, while concerns over Japan's fiscal health mount on the back of Takaichi's vow for aggressive fiscal spending. -- Bernama-Kyodo
