Tokyo, Dec. 17 -- Japan's government is considering its largest-ever initial budget of more than 120 trillion yen (about USD 775 billion) for the next fiscal year, Kyodo News reported. The move reflects Prime Minister Sanae Takaichi's push for aggressive spending to support an economy struggling with high prices.

If approved, the plan would cross the previous record 115.2 trillion yen initial budget that was cleared under former prime minister Shigeru Ishiba for fiscal 2025.

Kyodo News reported that the rise is being driven by higher personnel expenses and other fixed costs as inflation continues to bite, even as concerns grow about Japan's fragile public finances.

For fiscal 2026, which begins in April, debt-related spending, includin...