Japan’s debt-strapped government unveiled a budgeting mechanism to try to minimize the financial burden of new green and other growth initiatives by tying funding to cost-cutting results at its ministries.
Under the plan, ministries get ¥3 to spend on projects in targeted areas including the environment and digitalization for every yen they’re able to cut from other spending, according to documents released by the Cabinet Office Wednesday.
The plan calls for cuts of 10% to discretionary spending, which totaled ¥14.9 trillion ($135 billion) last year across the country’s ministries. Cuts to non-discretionary spending are also part of the plan.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.