So say Reuters who report that PM Abe will propose a record budget for the next fiscal year of more than JPY 96.3 trln ($800 billion) but cut borrowing for a third year according to government officials earlier today
Abe’s 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 JPY 95.9 trln
But spending restraint and a surge in tax revenues as the economy recovers allows the government to cut bond issuance by JPY 4.4 trLn to JPY 36.9 trln, the third decrease in a row and the lowest level in six years, the officials said.
The improved fiscal picture helps Abe trim Japan’s public debt, which is well over twice the country’s GDP after years of sluggish growth and huge stimulus spending. The budget for the coming year follows an extra budget of JPY 3.1 trln for this fiscal year, approved last week.
Reuters has more here
On Friday Eamonn reported on a local election in Japan today which could indicate the prospects of success for Abe’s “Third Arrow” reforms
Abe – Can he really deliver what’s needed to save Japan?
