Moscow. December 24. The Japanese Cabinet approved a record budget for the 2016 fiscal year starting in April, increasing defense spending and social security.
According to the newspaper the Japan Times, the draft budget volume 96,72 trillion yen ($796 billion), will be considered by the Japanese Parliament on 4 January. The budget, excluding debt service costs is 73,11 trillion yen, also a record level.
More than 40% of the budget – a record 31,97 trillion yen – will be spent on social programs.
The defense budget also increased to a record level to 5.05 trillion yen, which is 1.5% higher than a year earlier. Japan is increasing defense spending for four consecutive years, due to the desire of the government to improve their position in the solution of territorial disputes, particularly with China.
The income of Japanese budget from tax revenues in the coming fingado is expected to increase to a maximum of 25 years to 57.6 trillion yen. This assessment is based on the forecast of the authorities, according to which the GDP will increase by 1.7% in real terms and 3.1% in nominal terms.
This forecast is, however, better than expected Bank of Japan and many economists, therefore, experts say that the likelihood that tax revenue budget will be worse than forecast.
Anticipating more income, the government of Japan intends to reduce the issuance of new government bonds for the third year in a row. So, next fingado the state will release a paper on 147 trillion yen against 152,6 trillion yen in the current Pingdu.
The draft budget for the next fiscal year also intends to increase twice – to 20 billion yen – expenses for the development of tourism.
Spending on public projects will be increased marginally to 5,97 trillion yen, and most of them will be available for improvement of existing infrastructure.