Japan unveils ¥95.88T budget

|By:, SA News Editor

Japan's government has adopted a record ¥95.88T ($921B) budget for the fiscal year starting in April, which will include increased spending on social security, defense and public works.

However, the government is also trying to limit further growth of its massive debt, and it will reduce the issuance of new revenue bonds to ¥41.25T from ¥42.9T this year.

Economist Yoshimasa Maruyama is not convinced. "The government needs to show that it’s moving in the right direction on fiscal discipline but this budget lacks punch," Maruyama says. "The government must cut spending to reach the planned target of a surplus in 2020."

The budget also forecasts that real GDP will grow 1.4% and nominal GDP 3.3%.

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