Japan's cabinet approves a record $900-billion draft budget for FY 2019-20

Japanese Prime Minister Shinzo Abe's Cabinet approved on Friday a record $900 billion draft budget for the next fiscal year, boosted by spending to offset the impact of a planned sales tax hike, in a sign that fiscal reform is taking a backseat.

The general-account budget for the year starting April 1 is 101.5 trillion yen ($902.3 billion), and features increased spending on welfare, public works and defence on top of the offsetting steps, the Ministry of Finance said on Friday.

The proposed spending level compares with this year's initial 97.7 trillion yen and sets a record for a seventh straight year,