Japan Finance Minister Suzuki rules out extra debt issuance for defence plan

TOKYO : Japan's government is not considering issuing extra bonds to cover a planned increase in defence spending, Finance Minister Shunichi Suzuki said on Friday, pledging to remain fiscally disciplined.

Suzuki told reporters after the cabinet approved the defence build-up plans that the increase in defence budget spending marks a"historic turning point". He said just 6 per cent of all Japanese firms will be subjected to planned tax hikes to cover the increased spending, as the government keeps in mind the severe economic situation facing corporations.

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