Abe Aims to Cap Spending Growth to Rein in Japan’s Debt Burden
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The Abe administration aims to cap increases in spending as it tries to rein in the world’s heaviest debt load while sustaining a recovery from two decades of stagnation.
Spending growth over the next three fiscal years should be limited to a total of 1.6 trillion yen ($13 billion), excluding debt payments and grants to local governments, the same amount as the past three years, according to a draft plan released on Monday. The Japanese government also seeks to cut the deficit to 1 percent of gross domestic product, excluding interest payments, by the year starting in April 2018 and reach a surplus in fiscal 2020.