By Shinya Ajima
TOKYO, April 22, Kyodo
The Japanese Cabinet adopted on Friday a draft extra budget of 4.02 trillion yen (some $50 billion) for the current fiscal year, managing to accumulate funds for the early phase of reconstruction work following the March 11 earthquake and tsunami amid fiscal constraints.
To deal with the worst postwar crisis in the country, the first supplementary budget for the year begun this month is already bigger than the three special budgets drawn up after the 1995 Kobe quake totaling 3.23 trillion yen, but was made to require no bond issuance by diverting funds from the fiscal 2011 budget, officials said.
”We will not issue any new government bonds” to create the budget, Finance Minister Yoshihiko Noda said, stressing the government has maintained its fiscal discipline. ”This is the first step of Japan’s new start,” he told reporters after a Cabinet meeting.
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