The Cabinet endorsed a budget policy for fiscal 2006 Tuesday that aims to cut fresh issuance of government bonds to nearly 30.0 trillion yen from 34.4 trillion yen as requested by Prime Minister Junichiro Koizumi.
The policy, approved at an extraordinary Cabinet meeting, stipulates that the government will strictly review expenditures when compiling the budget for the next fiscal year, which starts in April. It also states that the move will be the first step toward an overall reform of revenues and expenditures that does not count on rising revenues from an economic recovery.
Koizumi told reporters after the meeting that drafting the budget will be "the last budget compilation" of his administration and that he wants it to be "suitable for a reform-oriented Cabinet."
Koizumi plans to leave office in September, when his term as president of the ruling Liberal Democratic Party expires.
"With a reduction in general expenditures from the previous year's level and an effort to try to lower fresh government bond issuance close to 30 trillion yen, I want to make the (fiscal 2006) budget reflect our reform drive in both expenditures and revenues," he said.