TOKYO—Japan’s debt servicing costs would exceed 30 trillion yen ($261.55 billion) for the first time ever in fiscal 2025 if interest rates rise by 1 percent more than expected, a draft of the Ministry of Finance’s (MOF) estimates, due later this month, showed. The MOF, in its annual estimates over a five-year period, projected debt servicing costs, worth 24.3 trillion yen for the next fiscal year, would hit 28.8 trillion yen in fiscal 2025, assuming interest rates at 1.3 percent. The estimated amount, to be presented at the lower house budget committee for debate on the state budget, would rise to 32.5 trillion yen in fiscal 2025 if interest rates rose to 2.3 percent. It would reach 36.3 trillion yen assuming interest rates at 3.3 percent, straining spending needed for policy-related areas such as education, defense, and public works. The latest estimates would bring home the benefit of the Bank …