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Japan to cut defense spending for 7th year

(Xinhua)
Updated: 2008-12-24 11:32

TOKYO -- The Japanese Cabinet approved a plan Wednesday to cut Japan's fiscal 2009 defense spending for the seventh consecutive year to a 14-year low, government sources said.

Defense spending for the fiscal 2009 starting in April will fall 0.1 percent, or 5.5 billion yen, from the initial fiscal 2008 budget to 4,774.1 billion yen.

The size of the initial defense budget will remain below the 4, 800 billion yen level for the second straight year if parliament approves the budget.

The Cabinet attributed the budget cut to falling oil prices, the appreciation of the Japanese currency and cost savings from the bulk purchase of arms and munitions.