Japan's cabinet approves record $730 billion budget for next fiscal year

TOKYO, Dec 27 (Reuters) - Japan's cabinet on Friday approved a record $730 billion budget for the fiscal year starting in April, while limiting new bond issuance to the lowest in 17 years on the back of record tax revenue.

The budget for the fiscal year that starts in April is estimated at 115.5 trillion yen ($732.36 billion), up 2.6% from the current year's initial amount of 112.6 trillion yen, driven by debt-servicing and social security costs.

(Reporting by Makiko Yamazaki; Editing by Himani Sarkar)

((Makiko.Yamazaki@thomsonreuters.com;))