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

By Makiko Yamazaki TOKYO (Reuters) -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.The 8.7 trillion yen approved Friday will help pay for measures to help attract recruits to Japan's Self-Defense Forces,

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

Japan's cabinet on Friday approved a record $730 billion budget for the fiscal year starting in April, while limiting new bond issuance to the lowest in 17 years on the back of record tax revenue. The budget for the fiscal year that starts in April is estimated at 115.

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.