The government plans a deeper cut in new bond sales than the ¥4.4 trillion reduction for the current fiscal year, Chief Cabinet Secretary Yasuhisa Shiozaki said. That would bring total bond issuance for the year to below ¥25.5 trillion.

Japan's combined outstanding central and local government debt is expected to stand at around 150 percent of gross domestic product at the end of this fiscal year through March, the highest among major industrialized nations.

The government issues bonds for money to fill the gap between its tax revenues and its spending. But officials are taking advantage of the economic recovery to push through further austerity measures.

The Japan Times Weekly: Dec. 16, 2006
(C) All rights reserved