Updated: 08/17/2012 18:59

Japan caps spending, borrowing, targets growth in 2013/14 budget

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Japan's government has approved budget guidelines for the next fiscal year, which starts in April, with a focus on promotion of its growth strategy.

The government has pledged to keep general spending excluding debt servicing at this year's level of about US$896 billion.

A finance ministry official said ministries are expected to seek up to US$50 billion to fund growth policies.

But they are required to cut public works and other discretionary spending by 10 percent.

Based on the guidelines, ministries will submit their budget requests to the finance ministry by the first week of next month.