Japanese cabinet approves FY 2008 budget
Tuesday, 25 December 2007
TOKYO, Dec 24 (Agencies): The Japanese cabinet passed an 83, 061.3 billion yen (around 735.1 billion US dollars) state budget for fiscal 2008 today, which is 0.2 per cent larger than the initial budget for fiscal 2007.
The general account budget for the year starting April 1, the first one compiled under Prime Minister Yasuo Fukuda's cabinet, which was inaugurated in September, aims to promote regional economies and increase economic growth, though a larger budget deficit is posing a challenge for the government.
According to the budget plan, general expenditures, or core policy-related outlays, are set at 47,284.5 billion yen (418.4 billion dollars), up 0.7 per cent from the initial fiscal 2007 budget.
The government cuts new government bonds to 25,348.0 billion yen (224.3 billion dollars) in fiscal 2008, down 0.3 per cent for the fourth straight year of declines.
The deficit in the primary balance-annual tax revenues minus outlays other than debt-servicing costs-is set to increase to 5, 184.8 billion yen (45.9 billion dollars) in the fiscal 2008 budget from 4,433.2 billion yen (39.2 billion dollars) in the initial fiscal 2007 budget.
Around 15,613.6 billion yen (138.2 billion dollars) are allocated to local tax grants, up 4.6 per cent for the second straight year of increases.
The budget plan proposes 4.0 per cent cut in foreign aid, or official development assistance, to 700.2 billion yen (6.2 billion dollars) for the ninth straight yearly decline.
Meanwhile, Japan's regulators have announced the country's biggest financial market reforms in a decade amid hot competition in Asia to be the region's financial hub.
The financial services agency Friday unveiled "a plan to strengthen the competitiveness of financial and capital markets" with deregulation and liberalisation.
The agency plans to submit bills to parliament early next year to revise existing regulations, agency officials said.
The package represents the first comprehensive financial reforms by Japan since it launched "Big Bang" deregulations in 1996.
Under the latest package, Japan will remove a ban on creating a comprehensive financial market to handle the trading of stocks, bonds and financial and commodity derivatives in about two years.
The package also wants to cut barriers between banks, securities and insurance firms while calling on the government to upgrade financial infrastructure.
"I hope to implement the plan as soon as possible so that the competitiveness of Japanese markets will revive," Financial Services Minister Yoshimi Watanabe said according to Kyodo News.
Japanese financial markets face competition from centres such as Singapore and Shanghai, with investors warning Japanese regulations fall short of global standards.
The general account budget for the year starting April 1, the first one compiled under Prime Minister Yasuo Fukuda's cabinet, which was inaugurated in September, aims to promote regional economies and increase economic growth, though a larger budget deficit is posing a challenge for the government.
According to the budget plan, general expenditures, or core policy-related outlays, are set at 47,284.5 billion yen (418.4 billion dollars), up 0.7 per cent from the initial fiscal 2007 budget.
The government cuts new government bonds to 25,348.0 billion yen (224.3 billion dollars) in fiscal 2008, down 0.3 per cent for the fourth straight year of declines.
The deficit in the primary balance-annual tax revenues minus outlays other than debt-servicing costs-is set to increase to 5, 184.8 billion yen (45.9 billion dollars) in the fiscal 2008 budget from 4,433.2 billion yen (39.2 billion dollars) in the initial fiscal 2007 budget.
Around 15,613.6 billion yen (138.2 billion dollars) are allocated to local tax grants, up 4.6 per cent for the second straight year of increases.
The budget plan proposes 4.0 per cent cut in foreign aid, or official development assistance, to 700.2 billion yen (6.2 billion dollars) for the ninth straight yearly decline.
Meanwhile, Japan's regulators have announced the country's biggest financial market reforms in a decade amid hot competition in Asia to be the region's financial hub.
The financial services agency Friday unveiled "a plan to strengthen the competitiveness of financial and capital markets" with deregulation and liberalisation.
The agency plans to submit bills to parliament early next year to revise existing regulations, agency officials said.
The package represents the first comprehensive financial reforms by Japan since it launched "Big Bang" deregulations in 1996.
Under the latest package, Japan will remove a ban on creating a comprehensive financial market to handle the trading of stocks, bonds and financial and commodity derivatives in about two years.
The package also wants to cut barriers between banks, securities and insurance firms while calling on the government to upgrade financial infrastructure.
"I hope to implement the plan as soon as possible so that the competitiveness of Japanese markets will revive," Financial Services Minister Yoshimi Watanabe said according to Kyodo News.
Japanese financial markets face competition from centres such as Singapore and Shanghai, with investors warning Japanese regulations fall short of global standards.