Japan is to set its state budget at 79.69 trillion yen for fiscal 2006, said Finance Minister Sadakazu Tanigaki on Monday. It is the only time in eight years that the number has dropped under 80 trillion yen.
The issuance of new government bonds in the next fiscal year would drop to 29.97 trillion yen, down from 34.39 trillion yen for fiscal 2005, Tanigaki said.
The Finance Ministry will disclose a draft budget Tuesday, which is expected to be approved by the cabinet on Saturday.
In fiscal 2005, the state budget was 82.18 trillion yen. The budget plan for next fiscal year starting from April 2006 would also make cuts in tax grants to local governments and policy- related general expenditures.