Economy Ministry to Seek 7.7 T. Yen in FY 2027 Budget

Japan’s Ministry of Economy, Trade and Industry is set to request a budget of 7,726.8 billion yen for fiscal 2027, according to a report on Thursday. This substantial sum includes 4,525 billion yen set aside under a new budget quota, which has no predetermined limit. The primary purpose of this allocation is to finance initiatives aimed at building a robust and thriving nation, including advancements in artificial intelligence and the semiconductor industry.

Prime Minister Sanae Takaichi’s commitment to eliminating the government’s dependence on supplementary budgets has influenced the ministry’s approach. Consequently, the initial budget request encompasses expenditures that would typically be sought in supplementary budgets, resulting in a figure roughly 2.5 times greater than the previous year’s allocation.

A significant portion of the 4,525 billion yen new budget quota is earmarked for physical artificial intelligence development, with 1,434.2 billion yen designated for this purpose. This funding will also support strengthening the semiconductor production infrastructure and other related endeavors, totaling about 680 billion yen.

Additionally, the ministry plans to secure critical minerals, such as rare earths and other rare metals, with approximately 220 billion yen allocated towards diversifying the procurement of naphtha, a key ingredient in chemical production, and bolstering stockpiles of essential chemical products.