Financial Times FT.com

Japan’s ministries wield spending axe

By Mure Dickie and Michiyo Nakamoto in Tokyo

Published: October 6 2009 16:05 | Last updated: October 6 2009 16:05

Japanese ministries have offered more than Y2,500bn ($27bn, €19bn, £17.5bn) in cuts to the huge stimulus package being implemented in the world's second-largest economy, but Yukio Hatoyama, prime minister, has called for even tougher trimming.

The call for further review of the nearly Y15,000bn supplementary budget reflects the determination of the new ruling Democratic party to find funds for its policy priorities, although where savings will be spent is still under debate amid widespread worries about the strength of Japan's economic recovery.

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