The Cabinet of Prime Minister Yukio Hatoyama adopted on Tuesday a basic policy on compiling the fiscal 2010 budget, including a ¥44 trillion limit on issuing new bonds.
Deputy Prime Minister Naoto Kan said the ¥44 trillion cap underlines the administration's determination to spend aggressively to prop up the economy while preventing long-term interest rates from rising dramatically at the same time.
"Compared with other countries, conditions in Japan, including deflation, are very severe," Kan said.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.