The panel charged with cutting Japan's bloated fiscal budget Thursday called on the government to reject the Defense Ministry's fiscal 2010 request for ¥7.22 billion to increase the ranks of the Self-Defense Forces by about 3,500.

As part of its open-door screening of budget requests for the next fiscal year starting in April, a working group of the Government Revitalization Unit gave the green light to the ministry's request totaling ¥119 billion for payments to landowners who lease land for U.S. military bases and SDF facilities.

Three working groups of the panel appointed by Prime Minister Yukio Hatoyama made the recommendations during the second round of project reviews, which began Nov. 11. The body will make a final decision on whether projects should should be scrapped, have their budgets cut or be transferred to municipalities, based on the results of the reviews by the working groups.

Concerning the SDF ranks, a working group said the Defense Ministry must work harder to cut personnel costs and consider outsourcing more of its operations to the private sector.

The working group called on the ministry to slash its expenses for weapons, ammunition, uniforms and other supplies, suggesting it should diversify the procurement network, import cheaper supplies and improve coordination between the Ground, Maritime and Air Self-Defense forces.