The World - News from July 22, 1986

Reaffirming a five-year-old policy to trim government spending, Japanese Prime Minister Yasuhiro Nakasone’s Cabinet approved guidelines that will limit the increase in the nation’s 1987 budget to only 1%. Although the guidelines allow exceptions for defense, foreign aid and social welfare, the Cabinet’s decision guaranteed that the percentage increase in defense spending next year will be the lowest in 27 years. In actual expenditures, however, the guidelines will allow the second-highest one-year gain in defense outlays since the end of World War II, with a total of $22.93 billion.