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Japan to cut discretionary spending by 10 pct in FY 2016 budget: source

[TOKYO] Japan's government will cut discretionary spending in the fiscal 2016 budget by 10 percent as part of its efforts to improve public finances, a government source said on Wednesday.

The government has set aside 14.7 trillion yen in the fiscal 2015 budget for discretionary spending - which includes public works and money for economic policy measures - and 10 percent reduction would reduce it to 13.2 trillion yen.

The government also plans to earmark 30 percent of its 2016 budget, or 4 trillion yen, for spending on growth policy measures, the government source said.

The government also plans to cap gains in welfare spending at 670.0 billion yen, the source said.