Regions

Japan planned to limit spending excluding payment of debts. This will be done with current level of around Y70 trillion for the next two fiscal years. This is a part of the efforts of Prime Minister Shinzo Abe to improve the fiscal health of the country, reported Nikkei.

Nikkei added that ministries and agencies were asked to tighten their belts after the rise in social security costs. Nikkei cited an outline of the upcoming medium term fiscal plan with an August deadline.

An allocated Y70.4 trillion was reserved by the government for social security, personnel and municipal funding and public programs.  These were all included in the fiscal budget for 2013 said the paper.

The Japanese newspaper added that the funding for stimulus measures would come from additional tax revenues.

The proposed plan will pave way to achieve a goal of halving the country's ratio of primary deficit to gross domestic product by fiscal year 2015.