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Japan Cabinet OKs Austere Budget

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<i> Associated Press</i>

Japan’s Cabinet, struggling with a 3-year-old recession, approved a 1995 budget Sunday that would reduce spending for the first time in 40 years while expanding public works and foreign aid.

The budget, which needs Parliament’s approval, totals $710 billion for the fiscal year starting April 1, down almost 3% from the fiscal 1994 budget.

It would be the first decline from year-earlier spending since a cut of 0.8% in 1955.

Parliament is expected to convene in mid-January to consider the budget.

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