Bloomberg News

Japan Sets Stopgap Budget as Election Delays Main Spending Plan

March 26, 2013

Japan’s Cabinet today approved an interim budget worth 13.2 trillion yen ($140 billion) for next fiscal year after the main budget was delayed by the election which bought Prime Minister Shinzo Abe to power.

The budget will cover spending for 50 days from the April 1 start of the new fiscal year, the Finance Ministry said in a statement. Abe formed his government on Dec. 26, the date when the finance ministry usually finishes compiling the next fiscal year’s annual budget.

The budget will include 1.5 trillion yen of funding for public works projects, pension payments and subsidies to local governments, according to the statement. Abe plans to boost public work spending by 16 percent next fiscal year to spur economic growth.

The interim budget will merge with the annual budget after parliament passes the regular spending plan for the year.

To contact the reporter on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net

To contact the editor responsible for this story: Scott Lanman at slanman@bloomberg.net


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