The Cabinet on Monday approved a budget worth ¥83.06 trillion for fiscal 2008, featuring more tax grants and subsidies to rural areas to revive regional economies and cover higher social security costs, but some experts view the package as an attempt to woo voters at the expense of true fiscal reform.
Under the budget, which is pending Diet approval during next year's ordinary session, spending would increase 0.2 percent from this year's initial budget.
Social security outlays would increase 3.0 percent and spending to support small and midsize companies would rise 7.3 percent.