Japan will create a new multiyear framework to finance policies aimed at boosting its growth potential as part of Prime Minister Sanae Takaichi¡¯s overhaul of the country¡¯s budgeting process.
The new mechanism is expected to start next fiscal year and will be used to fund measures including investments in economic security, crisis preparedness and other strategic growth areas, according to a document submitted by Finance Minister Satsuki Katayama to a government panel on Thursday.
Unlike conventional annual budgets, spending under the new framework will be planned and managed on a multiyear basis. Funding for the program will be secured under the same principles as the annual budget, drawing on tax revenues, savings from spending cuts elsewhere, and government bond issuance.
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