The government has come up with a new budget reform proposal aimed at achieving a primary budget surplus by fiscal 2011 by cutting spending and raising taxes, government sources said Thursday.
The plan slashes the government's projected revenue needs for all policy-related spending in fiscal 2011 (without issuing government bonds) to about 16 trillion yen from the initially projected 20 trillion yen.
This reflects expectations for higher tax revenues from the economic recovery and additional efforts to cut government spending.