Japan's journey to fiscal health fraught with challenges

Government caught between reducing deficit and ensuring economic growth

1223N Abe Aso

Prime Minister Shinzo Abe, left, and Finance Minister Taro Aso talk at the prime minister's office on Dec. 22.

TOKYO -- The Japanese government is expected to come up with a new plan for paring down its budget deficit as early as June, but many within the ruling coalition remain concerned that further tax hikes and spending cuts could slam the brakes on the economy.

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