TOKYO (Reuters) – Japan’s government is considering tapping funds under a special account set aside for foreign exchange intervention to pay for an expected increase in defense spending, Kyodo news agency reported on Tuesday.
The government could also issue additional bonds, until a decision is made on whether to increase taxes as a long-term source of funding for the scheduled increase in defense spending, Kyodo said without citing sources.
(Reporting by Leika Kihara; editing by Jonathan Oatis)
