TOKYO (MNI) – Japan’s government on Saturday said it has drafted a
budget for fiscal 2012 totalling Y90.334 trillion, slightly smaller than
Y92.412 trillion for the initial fiscal 2011 budget.
According to the plan, general-account spending, excluding
debt-servicing costs, will total Y68.390 trillion, down slightly from
Y70.863 trillion for this fiscal year.
New government bond issues will be Y44.244 trillion, down slightly
from Y44.298 trillion this year.
These figures are within the government’s targets. The fiscal
framework endorsed by the cabinet has called for capping general-account
spending at Y71 trillion and limiting new-bond issuance to Y44 trillion
in the fiscal 2012 budget.
The ratio of new government bond issuance to the overall budget
will be a record 49.0%, compared with 47.9% for this fiscal year.
Tax revenues will total Y42.346 trillion for fiscal 2012, up from
Y40.927 trillion, thanks to economic improvement.
Despite the improvement, tax revenues will be below new government
bond issuance for the fourth straight year.
tokyo@marketnews.com
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