Prime Minister Keizo Obuchi's Cabinet on Monday approved a draft 81.86 trillion yen general account budget for fiscal 1999 that calls for an 11 percent rise in public works spending.
The draft is the largest ever and is 5.4 percent larger than the initial fiscal 1998 figure of 77.67 trillion yen. It also puts the nation deeper into debt.
The expansionary draft was compiled in light of a huge package of tax cuts -- including 6.3 trillion yen in individual and corporate income tax reductions -- that could further harm the nation's fiscal health. Combined with the deepening recession, the tax cuts will reduce tax revenues by 20 percent from fiscal 1998's initial estimate to 47.12 trillion yen, according to the Finance Ministry.