March 30 (Reuters) - The Japanese government will set incremental goals for improving its primary balance, a measure of its reliance on debt, in its forthcoming fiscal strategy, according to a draft obtained Monday, the Nikkei business daily reported.
The Democratic Party of Japan-led government targets to ready by June a budget framework for fiscal 2011 to fiscal 2013 as well as a plan for imposing fiscal discipline over the medium to long term, the paper said.
The ultimate goal is a steady reduction in the ratio of government debt to gross domestic product, with intermediate steps of halving the primary balance deficit, reducing it to zero, and achieving a surplus. Dates have yet to be set for any of the targets, the report said.
Other proposals include a pay-as-you-go rule -- which would keep spending in line with tax revenues -- and a fixed rate for shrinking budget deficits, the daily said.
Japan's primary balance deficit for fiscal 2009 is estimated at a record 40.6 trillion yen ($438.8 billion) when both central and local government debts are factored in. Past governments had aimed to achieve a surplus by fiscal 2011, a target abandoned before the DPJ took power in 2009.
The draft budget framework offers a variety of proposals specifying spending levels, one of which would set bounds on how much each ministry and agency could request, the news report said.
($1=92.52 Yen)
(Reporting by Bijoy Koyitty in Bangalore; Editing by Gopakumar Warrier) Keywords: JAPAN DEBT/ (bijoy.koyitty@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: bijoy.koyitty.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Democratic Party of Japan-led government targets to ready by June a budget framework for fiscal 2011 to fiscal 2013 as well as a plan for imposing fiscal discipline over the medium to long term, the paper said.
The ultimate goal is a steady reduction in the ratio of government debt to gross domestic product, with intermediate steps of halving the primary balance deficit, reducing it to zero, and achieving a surplus. Dates have yet to be set for any of the targets, the report said.
Other proposals include a pay-as-you-go rule -- which would keep spending in line with tax revenues -- and a fixed rate for shrinking budget deficits, the daily said.
Japan's primary balance deficit for fiscal 2009 is estimated at a record 40.6 trillion yen ($438.8 billion) when both central and local government debts are factored in. Past governments had aimed to achieve a surplus by fiscal 2011, a target abandoned before the DPJ took power in 2009.
The draft budget framework offers a variety of proposals specifying spending levels, one of which would set bounds on how much each ministry and agency could request, the news report said.
($1=92.52 Yen)
(Reporting by Bijoy Koyitty in Bangalore; Editing by Gopakumar Warrier) Keywords: JAPAN DEBT/ (bijoy.koyitty@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: bijoy.koyitty.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.