Oct 15 (Reuters) - Budget requests from Japanese government ministries and agencies are expected to reach an all-time high of more than 90 trillion yen for the 2010/11 fiscal year, while tax revenue appears to be lagging initial expectations, the Nikkei business daily said.
Of the expenditures, tax allocations to local governments are estimated at 17 trillion yen ($190 billion), debt-servicing costs are seen at about 22 trillion yen and general expenditures are expected to sharply exceed 50 trillion yen, the paper said, without citing any sources.
Thursday is the deadline for submitting budget requests to the Finance Ministry.
Finance Minister Hirohisa Fujii has asked cabinet members to keep their total requests below the 88.54 trillion yen in the initial 2009/10 budget, excluding funds necessary to meet election pledges by the Democratic Party of Japan.
The Democrats won a general election on Aug. 30, ending a half century of nearly unbroken rule by the Liberal Democratic Party.
However, several ministries are expected to seek outlays that the Democrats did not promise, the paper said.
Worsening corporate earnings might drag tax revenue for fiscal 2009/10 to below 40 trillion yen, lower than the government's initial estimate of 46 trillion yen, the paper said.
With tax receipts projected to remain sluggish in fiscal 2010/11, the government may have no choice but to issue more deficit-covering bonds if it is unable to slash spending, the daily added. ($1=89.14 Yen) (Reporting by Archana Shankar in Bangalore; Editing by Deepak Kannan)
From: http://uk.reuters.com/article/idUKBNG46722620091014?rpc=401
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