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.
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