The Council on Economic and Fiscal Policy proposed Friday earmarking some 2 trillion yen for seven key areas under Prime Minister Junichiro Koizumi's reform blueprint when the panel draws up budgetary ceilings for fiscal 2002 next week.
The key panel also aims to reduce spending for low priority areas, which will likely include public works and official development assistance, as much as 5 trillion yen.
As a result, the government will seek to cut around 3 trillion yen from its projection of fiscal 2002 expenditures, economy minister Heizo Takenaka told a news conference after the meeting.