A Finance Ministry panel on Monday urged drastic cuts in social security, local government financing and civil servant payrolls in the fiscal 2006 budget to shore up the nation's debt-laden finances.

In its budget recommendations for the year starting next April, the Fiscal System Council also called for reducing contributions to the U.N. budget, saying Japan's share "is considered too big" because it is larger than the combined share of Britain, China, France and Russia, which make up four of the five permanent members of the Security Council.

The council also proposed ensuring that outlays for defense and official development assistance are being made efficiently.