Japan's government has managed to meet caps on spending and new bond issuance in compiling a budget for the year from next April, the finance minister said, as the government struggles to mend tattered public finances.
With new debt issuance seen topping tax revenues for the second straight year in the initial budget, Economics Minister Banri Kaieda stressed the need to rectify the severe fiscal situation as soon as possible, calling it "abnormal."
"The fact that new bond issuance exceeds tax revenues is not at all normal. We need to rectify this as soon as possible," Kaieda said after a cabinet meeting.
Finance Minister Yoshihiko Noda said he hoped the 2011/12 budget, set to be approved by the cabinet later on Friday, will help to boost the flagging economy and job market.
City A.M. Reporter