Japan's Ministry of Economy, Trade and Industry (METI) is seeking an unprecedented ¥7.8 trillion ($49 billion) budget to accelerate investments in semiconductors, artificial intelligence, and other core strategic industries under Prime Minister Shigeru Ishiba's growth initiative.

The ministry filed its funding request on Monday for the fiscal year beginning in April 2027. Ishiba's plan aims to generate more than ¥370 trillion in combined public and private investment across key industries over a 14-year period.

This unusually large funding request also reflects a reform in the budget process, which now allows ministries to submit proposals without spending caps in a single round of applications, as the government seeks to reduce its reliance on supplementary budgets.

When asked whether this request marks the largest budget application in the ministry's history, METI official Yuko Tamai told reporters during a briefing on the budget proposal that the ministry had not reviewed past application amounts for comparison and could not make a determination. However, she noted that the current request exceeds the ¥5.27 trillion combined total allocated to METI in the current fiscal year's initial budget and the previous fiscal year's supplementary budget.

The ministry's budget request, along with those from other government departments, will be submitted to the Ministry of Finance, which compiles the annual budget and determines how to fund spending measures.