Japan's lower house on Wednesday passed an 82.18 trillion yen (US$783 billion; ¤592 billion) national budget for the fiscal year starting April 1, boosting overall outlays to deal with the country's rapidly aging population but cutting spending in most other programs including defense. The budget plan, which lifts overall spending 0.1 percent, was passed with a vote of 281 to 187, said lower house spokeswoman Yuko Harada. It will now go to the less powerful upper house, where it is likely to be approved before the end of the month. Social security makes up the biggest chunk of the national budget and is one of the few areas where spending will rise. The 20.37 trillion yen (US$194 billion; ¤147 billion) in outlays _ up 2.9 percent _ is designed to help cover services for Japan's steadily growing population of elderly. To finance the budget, the government plans to issue bonds worth 34.39 trillion yen (US$328 billion; ¤248 billion), down 2.2 trillion yen (US$21 billion; ¤16 billion) from this fiscal year. The decline in the planned bond issuance _ the first in four years _ was made possible by cuts in defense, public works and education, and projected rises in tax revenues thanks to Japan's recent economic recovery. The budget cuts defense spending by 1 percent and public works outlays by 3.6 percent. Still, debt-servicing costs will rise 5 percent from the current fiscal year to 18.44 trillion yen (US$176 billion; ¤133 billion), as outstanding bond issues mature and interest payments come due.
