An advisory panel to Finance Minister Sadakazu Tanigaki drafted a proposal Monday urging more cuts in foreign aid in fiscal 2006, citing the nation's troubled finances.
The Fiscal System Council is scheduled to submit a package of recommendations on the general account budget for the next fiscal year, including the proposal on official development assistance, to Tanigaki on June 6, council members said.
The ODA portion of the general account budget has been pared down for six years in a row, sinking to 780 billion yen in fiscal 2005.