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By APD writer Alice
Japan's Cabinet has approved a record draft budget of 102.66 trillion yen ($938 billion) for the fiscal year 2020 in the context that spending for social security and defence is growing.
The spending plan for the fiscal year starting next April will reach 100 trillion yen for the second consecutive year. The initial overall spending for the current fiscal year, which will end in March 2020, hit 101.46 billion yen.
The draft budget, which will be submitted to the Diet in January, consists of 79.31 trillion yen for policy spending, including record-high defense expenditures, and 23.35 trillion yen in debt-servicing costs.
The Japanese government will set aside 1.78 trillion yen for stimulus packages to mitigate the negative impact of the consumption tax hike to 10 percent from 8 percent in October, the first in five years.
It will earmark 35.86 trillion yen to cover social security costs and 5.31 trillion yen for defense spending.
As part of the government's efforts to realize a social security system that benefits all generations, 488.2 billion yen will be allocated for free higher education, including grants and scholarships for college and training school students from low-income households.
Spending on public works projects will hit 6.86 trillion yen, including those to prevent and mitigate natural disasters, while 561.0 billion yen is earmarked for official development assistance to other countries.
In addition, the cabinet will also seek Diet approval for an 4.47 trillion yen extra budget for the current fiscal year, focusing on financing reconstruction of areas damaged by a recent series of powerful typhoons and other natural disasters.
(ASIA PACIFIC DAILY)
