Japan ended 2023 with a record high debt of 1,286.45 trillion yen ($8.6 billion), according to government data, Paralel.Az reports citing the Kyodo news agency.

The huge debt reportedly demonstrates that the country depends heavily on borrowing needed to cover expenses for the COVID-19 pandemic fight and rising prices. The total debt consists of government bonds, borrowing and financing bills.

Japan has seen an increase in tax revenues in recent years. However, its spending has exceeded tax revenues, Kyodo reported.

The national debt reportedly grew by 29.45 trillion yen from December 2022. Currently, the debt is more than twice the size of Japan's economy.

The Japanese government is trying to return to pre-emergency levels by reducing fiscal expenditures. It was the pandemic and the ongoing cost of living crisis that triggered an increase in fiscal expenditures. However, the government budget will be the second largest ever at 112.57 trillion yen for fiscal 2024, which starts in April, Kyodo reported.