(Reuters) - Japan plans to cap spending, excluding debt payments, at the current level of about 70 trillion yen ($736.80 billion) for the next two fiscal years as part of efforts by Prime Minister Shinzo Abe to improve fiscal health, the Nikkei reported.
Ministries and agencies will be asked to tighten their belts to curb any rise in social security costs, the Nikkei said, citing an outline of an upcoming medium-term fiscal plan due in August.
The government has allocated about 70.4 trillion yen for social security, public programs, personnel and municipal funding in the fiscal budget for 2013, the paper said.
New programs coinciding with an upcoming consumption tax hike, such as aid for families with children, will fall under a separate category, the business daily reported.
Funding for stimulus measures would come from additional tax revenues, the Nikkei said.
The plan will propose ways to achieve a goal of halving Japan's ratio of primary deficit to gross domestic product by fiscal 2015, the paper reported. ($1 = 95.0050 Japanese yen)
(Reporting By Neha Dimri in Bangalore; Editing by Sriraj Kalluvila)
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