Japan govt approves record 96.72t yen budget

Tokyo

JAPANESE Prime Minister Shinzo Abe's Cabinet approved on Thursday a record fiscal 2016 budget that counts on higher growth and tax revenue to achieve his aim of reviving the economy and curbing the world's heaviest debt burden.

But both targets look elusive, according to economists, as Mr Abe's strategy of relying heavily on growth and tax income might backfire. Without serious efforts to curb spending, they said, his budget-balancing goal remains a tall order. "What if Japan and the world economy peak out? That could deal a blow to tax revenue and reverse the fiscal improvement," said Hidenori Suezawa, fiscal analyst at SMBC Nikko Securities.