Monday's decision by the government to cut spending and aim for a primary surplus by 2011 is a step in the right direction, but more drastic reforms are needed to whip the books back into shape, experts say.
The government and the ruling coalition agreed to cut spending by 11.4 trillion yen to 14.3 trillion yen over the next five years.
The cuts, which include slashing the social security budget by 1.6 trillion yen, are estimated to cover more than 70 percent of the 16.5 trillion yen shortfall the government believes it must find to achieve a primary surplus in the combined central and local government budget by 2011.