Japan to propose record budget of $800B

japan-shinzo-abe

Japan’s government will propose a record budget for next fiscal year of more than $800 billion but cut borrowing for a third year, government officials said today, as Prime Minister Shinzo Abe seeks to maintain growth while curbing the heaviest debt burden in the industrial world.

The third annual budget since Abe swept to power in late 2012 also highlights his struggle to contain bulging welfare costs for the fast-ageing society while increasing discretionary spending in areas such as the military.

Abe’s $810 billion draft budget for the year from April, to be approved by the Cabinet on Wednesday and submitted to an upcoming session of Parliament, is up from this fiscal year’s initial $809 billion, the two officials said.

But spending restraint and a surge in tax revenues as the economy recovers allows the government to cut bond issuance by $37 billion to $311 billion, the lowest in six years.

(Reuters)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s