Japan Will Propose A Record $800 Billion Budget For Next Fiscal Year

Japan's Prime Minister Shinzo Abe speaks during a news conference at his official residence in Tokyo December 24, 2014. REUTERS/Thomas Peter Thomson ReutersJapan’s Prime Minister Shinzo Abe speaks during a news conference at his official residence in Tokyo

Japan’s government will propose a record budget for next fiscal year of more than $US800 billion but cut borrowing for a third year, government officials said on Sunday, as Prime Minister Shinzo Abe seeks to maintain growth while curbing the heaviest debt burden in the industrial world.

The third annual budget since Abe swept to power in late 2012 also highlights his struggle to contain bulging welfare costs for the fast-ageing society while increasing discretionary spending in areas such as the military.

Abe’s 96.3 trillion yen ($US813 billion) draft budget for the year from April, to be approved by the Cabinet on Wednesday and submitted to an upcoming session of Parliament, is up from this fiscal year’s initial 95.9 trillion, the two officials told Reuters.

But spending restraint and a surge in tax revenues as the economy recovers allows the government to cut bond issuance by 4.4 trillion yen to 36.9 trillion, the lowest in six years, the officials said.

(Reporting by Takaya Yamaguchi; Writing by William Mallard; Editing by Will Waterman)

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