Funding for the envisioned transfer of U.S. Marines from Okinawa to Guam will be slashed dramatically in fiscal 2012, the government decided Saturday.

It is earmarking just ¥7.3 billion for the transfer in next year's fiscal budget, down from the ¥51.8 billion set aside in the fiscal 2011 budget.

Total defense spending, meanwhile, will be reduced by 1.3 percent to ¥4.71 trillion.