A government-proposed fiscal reform bill to designate specific reduction targets for key budget areas became law Friday when it was passed by the Upper House during a plenary session.
The bill passed the Lower House earlier this month. It obliges the government to cut the fiscal deficit to 3 percent or less of the gross domestic product by fiscal 2003, and terminate the issue of deficit-covering bonds by the same year.
It sets targets for spending reductions in a wide range of areas. The bill constitutes an important part of Prime Minister Ryutaro Hashimoto's policy pledge to salvage the nation's coffers from debt.