Japan to set medium-term cap on government spending

Tokyo

JAPAN will set a medium-term cap on government spending in a bid to strengthen its commitment to fiscal belt-tightening in a draft proposal, government and ruling party sources said on Sunday.

The draft of the government's annual fiscal and economic blueprint limits the rise in general-account spending to a total of 1.6 trillion yen (S$17.4 billion) for the three years to March 2019, two years before its target year of a budget surplus excluding interest payments, the sources told Reuters.