TOKYO, Dec 26 (Reuters) - Japanese Prime Minister Sanae Takaichi's cabinet on Friday approved a record $785 billion budget for the next fiscal year, aiming to strike a balance between her proactive fiscal policy and debt blowout concerns by limiting new bond issuance.
Faced with rising government bond yields and a weak yen, the Takaichi administration has stepped up efforts to reassure investors that the government will not resort to irresponsible debt issuance or tax cuts.
