UPDATE 1-Japan mulls full funding for new policies – Nikkei

June 15 (BestGrowthStock) – The Japanese government plans to adopt
stricter fiscal management rules, which allow for policy
measures to be backed by permanent funding sources as a
condition for approval, The Nikkei business daily reported.

The plan aims to prevent the adoption of policies that
might have difficulty raising funds.

The proposal, aimed at shoring up the nation’s finances
over the medium to long term, is slated for cabinet approval
this month, the daily said.

This plan will complement the government’s new economic
strategy, which calls for real growth averaging at least 2
percent by fiscal 2020, it added.

The government plans to set an effective cap of around 71
trillion yen ($774.8 billion) on expenditures in each of the
three years starting in fiscal 2011, which could be upgraded if
it cuts spending and generates stable revenue from tax hikes,
the paper said.

The fiscal strategy also says the government should ensure
that bond issuances in 2011 do not exceed the 44 trillion yen
laid out in the initial budget for 2010, the daily reported.

However, it does not mention targets for 2012 and beyond,
the Nikkei said.
($1=91.64 Yen)

Stock Market Trading
(Reporting by Dinesh Mehta in Bangalore; Editing by Vyas
Mohan) (([email protected]; within U.S. +1 646
223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:
[email protected]))

UPDATE 1-Japan mulls full funding for new policies – Nikkei