TOKYO: The Japanese government said Monday that it will set aside 4.2 trillion yen in special spending quota for priority policy measures under its fiscal 2025 budget, including promoting wage increases and fighting high prices.

These measures also include strengthening the country’s defense capabilities, raising its birthrate and expand investments in carbon reduction and digital technologies.

Under the special quota, if agencies reduce discretionary spending by 10 pct from the previous year, they will be allowed to seek funding up to three times the size of the reductions.

The decision to set up such a special spending quota for the second straight year is part of efforts by the administration of Prime Minister Fumio Kishida to pull the country’s economy fully out of deflation and put it firmly on a growth path.

The government spelled out the decision in budget request guidelines, approved by the cabinet, for the year that starts next April. Agencies are given until the end of August to submit their budget requests. The government comes up with a budget plan late this year after the Finance Ministry scrutinizes the requests.

JIJI Press