Japanese Prime Minister Shinzo Abe’s cabinet approved on Wednesday a record $812 billion budget for the fiscal year starting on April 1, while cutting new borrowing for a third straight year in a bid to balance growth and fiscal reform.
The 96.34 trillion yen ($812.45 billion) general-account budget draft, the third since Abe swept to power in late 2012, marks a rise from this fiscal year’s initial 95.88 trillion yen, reflecting higher welfare spending and military outlays.
A projected rise in tax revenue to a 24-year high of 54.53 trillion yen on an expected economic recovery allows Tokyo to cut new bond issuance to a six-year low of 36.86 trillion yen. That accounts for 38.3 percent of the budget, a six-year low.
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