Japanese Cabinet Aproves 2016 Budget Guidelines

Prime Minister Shinzo Abe’s Cabinet approved Friday guidelines for compiling the fiscal 2016 budget, aiming to achieve robust economic growth while modestly pursuing fiscal consolidation.

In the guidelines, the government sets no ceiling on budget requests from ministries and agencies for the third straight year, in an attempt to flexibly adapt the budget to economic conditions — a move which could prompt ruling party lawmakers to demand more spending.

If ministries and agencies submit requests in line with the guidelines, general-account budget requests for the year starting April 2016 are likely to surpass 100 trillion yen ($807.5 billion) for the second consecutive year.

Ministries and agencies will make budget requests by the end of August based on the guidelines, for scrutiny by the Finance Ministry for compilation of the fiscal 2016 budget later this year.

via Mainichi

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza