Japan's budget on missile defense to rise over 30 pct

The Japanese Cabinet approved on Sunday the government's budget plan which raised spending on missile defense system to 182.6 billion yen (1.54 billion U.S. dollars) in fiscal 2007, Kyodo News reported.

The initial budget on the missile defense marks a rise of 42.7 billion yen (360.1 million dollars), or 30.5 percent from fiscal 2006. The government plans to upgrade Aegis destroyers and the Patriot missile system to make them capable of ballistic missile defense with the increased budget.

Meanwhile, overall defense budget stands at 4,801.6 billion yen (40.5 billion dollars), down 0.3 percent, for the fifth consecutive year of decline.

Among other defense spending, a total of 7.2 billion yen (60.7 million dollars) will be set aside in connection with the planned U.S. military realignment, while some 5 billion yen (42.2 million dollars) is earmarked as subsidies for local communities to accept the U.S. forces.

The total national budget for fiscal 2007 starting on April 1 will rise 4.0 percent to 82,908.8 billion yen (699.2 billion dollars), with a record-high 21,140.9 billion yen (178.3 billion dollars) allocated for social security-related spending.

Under the approved budget plan, the government will cut new government bond issuance by 15.2 percent to 25,432.0 billion yen ( 214.5 billion dollars) in fiscal 2007 from the initial budget for fiscal 2006.

The balance of government debts at the national and local levels will stand at 148.1 percent of Japan's gross domestic product at the end of fiscal 2007, down slightly from a projected 150.2 percent at the end of fiscal 2006 in the coming March, according to the plan.

The plan that finances the year from April 2007 to March 2008 is the first national budget compiled by the administration of Prime Minister Shinzo Abe, who assumed the post in September.

Source: Xinhua