Cabinet OKs record budget ceiling

The Cabinet on Wednesday approved a record 52.7 trillion yen cap on general policy budget spending for the fiscal year starting in April 2010.

The amount is 940 billion yen higher than the current fiscal year's initial budget.

The Finance Ministry raised the ceiling partly to take account of a natural increase in social security spending by 1.09 trillion yen, bringing the total to 25.9 trillion yen. Spending on social security and welfare programs will make up the largest category in the budget.

The Cabinet of Prime Minister Taro Aso decided to abandon a target of curbing natural increases in expenditures for social security by 220 billion yen annually.

The government will also set aside 350 billion yen in special reserves to address priority issues such as the deteriorating economy, 20 billion yen more than the current fiscal year.(IHT/Asahi: July 2,2009)