The government's draft budget for fiscal 2014, which Prime Minister Shinzo Abe's Cabinet approved Tuesday, reflects a lack of serious efforts to cut public spending and reduce government debt at a time when the tax burden on consumers is set to increase.
Tax revenue is expected to reach the highest level in seven years with the 3-percentage point consumption tax hike in April and higher corporate tax income amid improved business earnings.
Still, ballooning government spending will result in an increase in the amount of outstanding government bonds by ¥29 trillion at yearend. Social security expenditures for the aging population will top ¥30 trillion for the first time, and public works spending will also increase from the current fiscal year. Defense spending will rise 2.8 percent for the second annual increase in a row.