Japanese government approved a 96.3 trillion yen new budget for the coming fiscal year. That is equivalent to some 812 billion US dollars. The budget is a record as Prime Minister Shinzo Abe's cabinet approved to spend more on welfare and military outlays.
Meanwhile, tax revenue rose to a 24-year high of 54.5 trillion yen, as recovery expectations allowed room for more bond-cuts in the market. New bond issuances shrank to 36.9 trillion yen, a six year low. Abe said, the world's third largest economy is on track to meeting his promise of halving the primary budget deficit in the next fiscal year from levels five fiscal years ago.
The new fiscal year starts from April 1st. Analysts warn however, the budget showed fiscal consolidation was slowing and risks posed by relying too much on growth.