The general account budget for fiscal 2015 is likely to reach a record high of about ¥98 trillion, exceeding the ¥95.9 trillion initial budget for this year, Finance Ministry sources said.
With Prime Minister Shinzo Abe eager to shore up the flagging economy, policy spending for the fiscal year starting next April, which will be used on social security programs and public works projects, is expected to expand to around ¥74 trillion, up from ¥72.6 trillion for 2014.
The government will keep new bond issuance below ¥40 trillion for the first time in six years, as tax revenue is forecast to grow with corporate profits improving due mainly to the yen's depreciation, the sources said Wednesday.