Japan Passes Record $1 Trillion Budget

Japan’s lower house passed a record trillion-dollar (92.3 trillion yen) budget today that includes issuing 44.3 trillion yen in new bonds. The budget included measures to pay for new child-care allowances and free public high school education promised during the election of the new government that took power last September. The budget must now be approved by the upper house.

Prime Minister Yukio Hatoyama has pledged to cut “wasteful” spending and direct more money to individual households. At the same time, the Organization for Economic Cooperation and Development has warned that Japan’s public debt will rise to 200 percent of the country’s Gross Domestic Product by 2011.

Source: AFP news

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