Japanese Prime Minister Shinzo Abe's cabinet approved on Thursday a record fiscal 2016 budget that counts on higher growth and tax revenue to achieve his aim of reviving the economy and reining in huge public debt.
Total spending for the fiscal year starting April 1 will be 96.72 trillion yen (537 billion pounds).
The initial spending plan for the current year totalled 96.3 trillion yen.
The draft budget - the fourth since Abe returned to power in late 2012 - features record welfare spending to cope with fast-ageing population and a military outlay that topped 5 trillion yen for the first time ever.
The proposed budget underscores the challenge Abe faces in striking a balance between the need to stimulate the flagging economy ahead of an upper house election and to curb the world's heaviest public debt burden at the same time.