Japan Mulls Deficit Cut as Sales-Tax Debate Intensifies: Economy

Japan is considering an 8 trillion yen ($82 billion) target for budget-deficit cuts over the next two years as officials debate how to proceed with a sales-tax increase that threatens to damage an economic rebound.

The goal is based on the assumption that the consumption levy is raised as planned to 8 percent in April, from 5 percent now, according to two government officials who asked not to be named per government policy. Prime Minister Shinzo Abe’s administration plans to release its medium-term fiscal plans, and a final decision on the sales levy, later this year.