Finance Minister Fukushiro Nukaga said July 28 the government has set a limit of around ¥47.8 trillion for general expenditures in the fiscal 2009 budget.

Finance Minister Fukushiro Nukaga JAPAN TIMES PHOTO

Swelling social welfare costs due to the nation's aging population helped push the cap slightly higher than the ¥47.3 trillion initially set for this year's budget.

Social security expenditures related to the aging population are forecast to increase to ¥870 billion in fiscal 2009.

Although the government will stick to its plan set in fiscal 2006 to curb increases in public pension, health-care and other social security-related costs by ¥220 billion each year, the budget for next year will still rise by ¥650 billion from this year.

The government will meanwhile trim public-works spending in fiscal 2009 by 3 percent from the current year.