Japan: public finances

How much tax does the Japanese government collect?

Tax and stamp revenue is budgeted at ¥83.74 trillion in the fiscal 2026 general account, 68.5% of total revenue, according to the Ministry of Finance's Public Finance Fact Sheet (April 2026). Consumption tax is the largest source at ¥26.69 trillion, followed by income tax at ¥25.33 trillion and corporation tax at ¥20.70 trillion.

These are budget estimates for the central government's general account, not results. Most of the rest of revenue comes from new government bonds. Local governments collect their own taxes on top of these.

Official sources: MOF: Public Finance Fact Sheet, FY2026 (PDF)

How much does Japan spend on social security?

Social security is budgeted at ¥39.06 trillion in fiscal 2026, 31.9% of general account spending of ¥122.31 trillion, according to the Ministry of Finance's Public Finance Fact Sheet (April 2026). It is the largest item in the central government budget.

The figure is the central government's contribution from the general account to pensions, health care, long-term care and other programmes. Total social security benefits are larger, because they are also paid for from insurance premiums and by local governments.

Official sources: MOF: Public Finance Fact Sheet, FY2026 (PDF)

How much does Japan spend on interest and debt repayment?

National debt service is budgeted at ¥31.28 trillion in fiscal 2026, 25.6% of general account spending, according to the Ministry of Finance's Public Finance Fact Sheet (April 2026). That is made up of ¥13.07 trillion for interest payments and ¥18.21 trillion for redemption of bonds.

Debt service is the second-largest item after social security. Redemption is the amount set aside to repay bonds.

Official sources: MOF: Public Finance Fact Sheet, FY2026 (PDF)

How much of Japan's budget is financed by borrowing?

New bonds are budgeted to finance 24.2% of general account spending in fiscal 2026, according to the Ministry of Finance's Public Finance Fact Sheet (April 2026). Issuance totals ¥29.58 trillion, of which ¥22.87 trillion are deficit-financing bonds and ¥6.72 trillion construction bonds.

The bond dependency ratio is bond issuance divided by total general account spending. The same fact sheet projects government general bonds outstanding of ¥1,145 trillion at the end of fiscal 2026. Supplementary budgets during the year usually add more borrowing.

Official sources: MOF: Public Finance Fact Sheet, FY2026 (PDF)

What is in Japan's fiscal 2026 supplementary budget?

Japan's first supplementary budget for fiscal 2026 adds ¥3.11 trillion of spending, financed by deficit-financing bonds, according to the Ministry of Finance's outline of 3 June 2026. It includes a ¥2.5 trillion reserve fund for responding to the situation in the Middle East, ¥513.5 billion in general contingency reserves and ¥100 billion for local allocation tax grants.

Supplementary budgets are passed by the Diet during the year on top of the main budget.

Official sources: MOF: FY2026 supplementary budget (PDF)

How much does Japan spend on defence?

National defence is budgeted at ¥8.98 trillion in the fiscal 2026 general account, 7.3% of total spending, according to the Ministry of Finance's Public Finance Fact Sheet (April 2026). The same document shows ¥2.13 trillion of revenue earmarked for defence build-up and ¥576 billion from a special corporation tax for defence.

The figure covers the central government's general account only and is a budget estimate, not actual spending. Supplementary budgets passed during the year can change the total.

Official sources: MOF: Public Finance Fact Sheet, FY2026 (PDF)

What is Japan's debt to GDP ratio?

204.8% of GDP: that is general government gross debt in Japan for 2025, according to the IMF. Since 2005 it has ranged from 150.4% of GDP (2007) to 228.8% of GDP (2020). It is 1st highest of 29 in East Asia & Pacific, where the median is 45.0% of GDP. Worldwide: 1st of 185.

What is Japan's fiscal deficit?

According to the IMF, general government net lending or borrowing in Japan was -0.7% of GDP in 2025 (a deficit). That is the highest since at least 2005. Across East Asia & Pacific the middle value was -1.7% of GDP, and Japan placed 13th highest of 29. Worldwide: 49th of 188.

What is Japan's government revenue?

In 2025, general government revenue in Japan was 36.3% of GDP, according to the IMF. It is the top of the series, which starts in 2005. East Asia & Pacific median: 33.6% of GDP; Japan is 14th highest of 29. Worldwide: 56th of 187.

How big is Japan's government spending as a share of GDP?

In 2025, general government spending in Japan was 37.0% of GDP, according to the IMF. Since 2005 it has ranged from 32.7% of GDP (2006) to 43.6% of GDP (2020). East Asia & Pacific median: 32.9% of GDP; Japan is 12th highest of 29. World rank, highest first: 64th of 186.

How much does Japan spend on its military?

According to SIPRI, military spending in Japan was 1.4% of GDP in 2025. No year since 2005 has been higher. It is 8th highest of 16 in East Asia & Pacific, where the median is 1.4% of GDP. Worldwide: 86th of 149.