Japan to \\\'cap new debt issuance\\\' at $407.62b next FY

TOKYO, July 20 (Reuters): Japan's government will cap new bond issuance for next fiscal year's budget at 41.3 trillion yen ($407.62 billion), which is the same amount of new debt sold for the current fiscal year's budget, the Nikkei reported on Saturday.

The debt cap will help the government meet its fiscal discipline target, but it will have to cut spending as budget requests for next fiscal year are expected to rise to a record high above 100 trillion yen, the Nikkei reported without citing sources.

The cabinet will agree budget request guidelines on July 25 but is unlikely to set a limit on budget requests, the Nikkei said. This could worry some investors as Japan's debt burden is the largest in the world at more than twice the size of its $5 trillion economy.