Japan's cabinet approved a record 122.3 trillion yen budget for the upcoming fiscal year, focusing on fiscal prudence despite increased spending. The budget aims to balance proactive policy with debt concerns by limiting new bond issuance, with debt dependence ratio falling to its lowest since 1998. Higher tax revenues will fund increased social welfare, defense, and debt-servicing costs, which are rising due to higher interest rates as the Bank of Japan exits ultra-loose monetary policy.