Japanese Prime Minister Shigeru Ishiba's cabinet on Friday approved a record $730 billion budget for the next fiscal year, while limiting new bond issuance to the lowest in 17 years on the back of record tax revenue.

Japan's government on Friday approved a record budget for the next fiscal year, ramping up spending on social welfare, as the population ages, and defence to tackle regional threats.

Populations are aging rapidly in much of the rich world, forcing governments to spend increasing amounts on pensions.

The Japanese government is expected to approve a record initial budget Friday for the next fiscal year that will ramp up spending on defense and support for regional economies.

The Japanese Cabinet has given its go-ahead to increase the country's defence budget to 8.7 trillion yen ($55 billion) in 2025. Japan currently seeks to shield itself from threats emerging from rivals like North Korea and China.

Japan’s cabinet approved a record ¥115.5 trillion ($732 billion) budget for the fiscal year starting April 2025, setting up the minority government of Prime Minister Shigeru Ishiba for a key test of its longevity in getting the proposal approved by parliament.