Japan slams brakes on $79 billion in spending

Japan said Friday it would delay 5.0 trillion yen (S$79 billion) in spending as the government faces a severe cash crunch that could see it run out of money within months.

Officials warned there would not be enough money to cover its expenses as political gridlock ties up passage of a bond-issuance bill needed to help pay for some 40 per cent of Tokyo's spending in the fiscal year to March.

Finance Minister Jun Azumi warned Friday that public reserves would "mostly dry up at the end of November" if the opposition-led stalemate continued, with the current parliament due to end on Saturday. They are expected to restart in October.

"There is a high possibility that we will have to...

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The Japanese government might run out of money. How do you think that would affect your life?