ID :
202165
Thu, 08/18/2011 - 15:24
Auther :
Shortlink :
https://oananews.org//node/202165
The shortlink copeid
Gov't eyes 10% policy spending cut in FY 2012
TOKYO, Aug. 18 Kyodo - The government is considering reducing policy spending by 10 percent under the state budget for fiscal 2012 from the current year, in a step that would spare some 1.3 trillion yen for social security costs and signature policies under a new prime minister, officials said Thursday.
The idea came as the government decided on the outline of guidelines for ministries and agencies to file their requests for the initial budget for the year starting next April.
Finance Minister Yoshihiko Noda is expected to instruct other Cabinet members as early as next week to cut the policy spending of each government office, which excludes such compulsory expenses as employment costs.
Of the money to be spared, about 700 billion yen would be used to help cover the nation's burgeoning welfare costs resulting from its aging population and 600 billion yen to reflect the policies of a successor to Prime Minister Naoto Kan, who is almost certain to leave office within weeks, said the officials.
The government is likely to finalize the budgetary request guidelines in mid-September, while its offices will submit their requests to the Finance Ministry later in the month.
The Cabinet agreed last week that under the initial fiscal 2012 budget, the government will spend no more than 71 trillion yen, excluding debt-servicing costs, and will also cap the issuance of new bonds at 44 trillion yen, both the same level as the fiscal 2011 budget.
Spending necessary for reconstruction work following the March earthquake and tsunami will be counted separately as the government is planning to issue special bonds that would be serviced with proceeds from envisaged provisional tax hikes.
The idea came as the government decided on the outline of guidelines for ministries and agencies to file their requests for the initial budget for the year starting next April.
Finance Minister Yoshihiko Noda is expected to instruct other Cabinet members as early as next week to cut the policy spending of each government office, which excludes such compulsory expenses as employment costs.
Of the money to be spared, about 700 billion yen would be used to help cover the nation's burgeoning welfare costs resulting from its aging population and 600 billion yen to reflect the policies of a successor to Prime Minister Naoto Kan, who is almost certain to leave office within weeks, said the officials.
The government is likely to finalize the budgetary request guidelines in mid-September, while its offices will submit their requests to the Finance Ministry later in the month.
The Cabinet agreed last week that under the initial fiscal 2012 budget, the government will spend no more than 71 trillion yen, excluding debt-servicing costs, and will also cap the issuance of new bonds at 44 trillion yen, both the same level as the fiscal 2011 budget.
Spending necessary for reconstruction work following the March earthquake and tsunami will be counted separately as the government is planning to issue special bonds that would be serviced with proceeds from envisaged provisional tax hikes.
