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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Japan new cabinet targets waste, to keep stimulus Fri Sep 18, 2009 2:33am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Hideyuki Sano and Linda Sieg TOKYO (Reuters) - Japan's new prime minister ordered the cabinet on Friday to root out wasteful projects in a $154 billion extra budget crafted by his predecessor, but his deputy stressed the aim was to redirect stimulus spending, not cut it. Opinion polls showed a stunning three-quarters of Japanese voters support Prime Minister Yukio Hatoyama's new cabinet, which took office on Wednesday after the ouster of the long-ruling Liberal Democratic Party (LDP). But Hatoyama is under pressure to make good quickly on the Democratic Party of Japan promises to focus spending on consumers, cut waste and reduce bureaucrats' control over policy. New Finance Minister Hirohisa Fujii told reporters he aimed to find several trillion yen in savings from the review of the 14 trillion yen ($153.4 billion) budget, adding this could result in less government bond issuance for the year to next March 31. But he stopped short of specifying the amount of a possible cut in the total 44.1 trillion yen worth of Japanese government bond issuance planned for 2009/10. Deputy Prime Minister Naoto Kan, who heads a powerful new strategy bureau charged with setting policy priorities, signaled the government's commitment to break with old ways. "Under past Liberal Democratic Party governments, ministers got lectures from bureaucrats based on the interests of each ministry and based on that ... made various demands," he told a news conference. "Under our party, or rather, the Hatoyama cabinet, ministers themselves are already showing a stance ... based on the interests of the people rather than ministries' interests." In a sign the government meant to keep its campaign promises, Transport Minister Seiji Maehara on Thursday told reporters that two costly and long-planned dam projects may be scrapped. Kan, a former Democratic Party leader, is in charge of a new National Strategy Bureau that will also oversee the budget process. He will have to liaise closely with Fujii and other key ministers, although no one is quite sure how that will work. REFOCUS SPENDING, NOT CUT Hatoyama's pledge to cut wasteful spending has raised some concerns that the surgery on the extra budget would decrease stimulus needed to ensure Japan's nascent recovery from its worst recession since World War Two stays on track. Kan sought to allay such concerns. "We are paying attention to the economy. It is not correct to say we are going to freeze spending. We will be reallocating it." The Bank of Japan has upgraded its assessment of the economy, as exports and output bounced back from a steep fall triggered by the global crisis. But Japan's jobless rate hit a record high of 5.7 percent in July, the economy has been hit by deflation, and analysts warn that the incipient recovery is largely due to the temporary effects of global government stimulus steps. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Indonesia urged to stay alert for militant attacks Cancer villages in the wake of China's boom The river that flows through Shangba ranges from murky white to a bright shade of orange, so viscous with heavy metal byproducts that it barely ripples. The grandaughters of Yun Yaoshun, above, died at the ages of 12 and 18. Full Article Slideshow: Shangba's river of death Factbox: Lead poisoning concerns More International News Karzai says vote was fair, Italian troops hit U.S. envoy resumes push for Israel settlement deal U.S. judge orders Kuwaiti held at Guantanamo freed Iran security forces clash with protesters: witness North Korea's nuclear arms aimed at South: official More International News... Featured Broker sponsored link Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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