The Abe administration is considering an ¥8 trillion target for budget-deficit cuts over the next two years as officials debate how to proceed with the planned consumption tax increases that threaten to take the wind out of the economic rebound.

The possible target is based on the assumption that the 5 percent consumption tax is raised as planned to 8 percent in April, according to two officials who asked not to be named per government policy.

Prime Minister Shinzo Abe's administration plans to release its medium-term fiscal plans, and a final decision on the consumption tax, later this year.