Japan fiscal blueprint to propose flexible spending on annual basis

[TOKYO] Japan should take a flexible approach, rather than setting a rigid cap, on annual state spending, a draft of the government's fiscal blueprint will propose on Monday.

The draft proposal will call for limiting rises in general account spending to 1.6 trillion yen (S$17.3 billion) for the three years to March 2019, according to a document obtained by Reuters on Monday.

But the proposal is unlikely to set a cap on annual spending, mindful of premier Shinzo Abe's preference to prioritise stimulating the economy over fiscal discipline.

The draft will be submitted to Mr Abe's top economic advisory panel, the Council on Economic and Fiscal Policy, later on Monday.

REUTERS