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Japanese government says it will cap spending and new bond issuance in the next fiscal year.
A budget outline for the fiscal year 2011 to 2012 says the government will aim to cap general-account spending at around 71 trillion yen, to rein in bulging debt. Chief Cabinet Sectary Yoshito Sengoku says new debt issuance for the next fiscal year, will also be kept under the current year's level of 44 trillion yen.
Based on the budget guidelines, government ministries will submit their spending requests by the end of August. A draft annual budget will be compiled by the end of the year.
Japan's caps on spending and bond issuance is part of the country's fiscal framework to rein in its public debt, which is now nearly twice the size of its GDP. Full story >>