Aso orders ruling bloc to draw up additional economic steps+

TOKYO, March 13 Kyodo -
Prime Minister Taro Aso ordered the ruling parties Friday to compile
large-scale additional economic measures lasting several fiscal years in an
effort to ride out the deepening economic recession, apparently with an eye
toward forming an extra budget for the next fiscal year to finance the
measures.
''It would be tardy to tackle economic downward risks after signs emerge, so
it's important to take them into consideration beforehand,'' Aso told
reporters. ''They (the envisioned measures) are for stemming a further economic
slump...and reducing pain (among citizens caused by rising unemployment).''
The government will also hold meetings of Cabinet ministers concerned and
experts from diverse fields including economists and journalists for five days
next week in search of fresh ideas to boost the economy.
To bail Japan out of the unprecedented economic slump, ''We need to put
together all our wisdom and power (from various circles), not just from the
ruling coalition,'' Aso said.
Immediately after the additional measures are put into shape, the government is
expected to compile a supplementary budget for fiscal 2009 starting April 1 to
finance them and submit it during the ongoing Diet session through June 3.
Political pundits say that with the submission, Aso, who is struggling with
slumping popularity, may further put off dissolution of the House of
Representatives for a snap election, which has been widely expected to take
place this spring, or may move for dissolution before the envisaged extra
budget passes the Diet and seek a popular mandate over it.
Since the main budget for the next fiscal year is still being debated in the
opposition-controlled House of Councillors, however, the premier has refrained
from commenting about an extra budget.
''I am not thinking (of drawing up a supplementary budget for fiscal 2009) at
this point,'' Aso said in an interview held with some media organizations in
the evening.
Following the order, the ruling bloc of Aso's Liberal Democratic Party and the
New Komeito party is likely to craft by the end of this month a draft package
of new stimulus measures worth 100 trillion yen with 15 trillion to 20 trillion
yen in fiscal spending.
Finance Minister Kaoru Yosano told reporters on Friday that Aso will likely
discuss Japan's fresh fiscal stimulus during a summit meeting of the Group of
20 major industrialized and emerging economies slated for April 2 in London.
Yosano said Tokyo will draw up an additional package in line with U.S. Treasury
Secretary Timothy Geithner's calls on the other G-20 economies to implement
stimulus measures worth 2 percent of gross domestic product each year for 2009
and 2010.
Japan has already worked out a set of fiscal stimulus steps worth 75 trillion
yen in total, involving actual fiscal spending of 12 trillion yen that will
amount to about 2 percent of its roughly 500 trillion yen GDP.
The existing package consists of two extra budgets for fiscal 2008 through
March 31 and the principal budget for fiscal 2009.
On the experts' meetings, Chief Cabinet Secretary Takeo Kawamura told a press
conference that there will be 10 sessions for the five days over such topics as
employment, social welfare as well as regional economies and about eight people
will attend each session.
''It is of great significance to listen to the opinions of experts to find out
how Japan should steer the world's economy along with the United States,'' the
top Japanese government spokesman said.
The LDP already set up a panel headed by former Chief Cabinet Secretary
Nobutaka Machimura and started discussions on economic growth strategies. It is
discussing the possibility of compiling a medium-term package lasting three
years and creating an extra budget to cover part of the package.
==Kyodo
2009-03-13 22:21:23