The record ¥96.7 trillion draft budget for fiscal 2016 is by many measures a feat, a key push in the government's efforts to cut spending.

But amid snowballing welfare costs straining already tattered finances, Japan is nowhere near the clear in its bid for fiscal health, economists say.

The Cabinet on Thursday approved a draft general account budget that is ¥380 billion larger than the initial budget for the current fiscal year, itself the largest yet.