The Japanese government will curb the nation's debts while focusing on rebuilding areas hit by the March 11th disaster when it compiles the budget for the fiscal year that begins next April.

The principles, approved at Friday's Cabinet meeting, include an effort to keep the government's expenditures at or below 71 trillion yen, or about 920 billion dollars. This excludes expenditure for servicing government bonds and is the same level as the initial budget for the current fiscal year.

The government will do its best to keep the issuance of new bonds at or below 44 trillion yen, or about 570 billion dollars. This is also the same level as the initial fiscal 2011 budget.

It says the plan is aimed at securing market confidence against the backdrop of the European debt crisis.

Japan will gradually increase the consumption tax from the current 5 percent to 10 percent by the mid 2010s to achieve economic growth and improve its fiscal situation.

The budget, which will mark the beginning of Japan's revitalization, places emphasis on reviving the agriculture, forestry and fisheries industries, and redesigning energy policy. The government hopes to decide on the budget bill on December 24th.

Prime Minister Yoshihiko Noda says the European debt crisis is not someone else's misfortune and Japan will compile a budget based on these principles to reassure the markets.

Source: http://www3.nhk.or.jp/daily/english/20111216_20.html

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