Japanese Finance Minister Shunichi Suzuki said in a statement on Tuesday that “we will continue to strive for the fiscal year 2025 main balance target.

His comment comes after Japanese Prime Minister Fumio Kishida’s cabinet on Friday approved a record 114.4 trillion yen ($863 billion) in overall spending, including a jump in defense spending,

In response, Suzuki said “budget reliance on bond issuance has actually improved from this year, adding that “I don’t think defense spending has gone overboard.”

Market reaction

USD/JPY was last seen trading at 132.81, on the defensive amid a broadly weaker US Dollar.