Chief Cabinet Secretary Hiromu Nonaka hinted Friday that the government may need to compile a second extra budget for fiscal 1999 later this year.

The government will submit the first supplementary budget to the Diet in early July to finance measures to create new jobs and boost competitiveness in Japan's industrial sectors.

"It will be necessary to consider whether (another) extra budget should be prepared" to keep the economy afloat, Nonaka said.

Government sources also said the extra budget will be needed to build facilities in Okinawa, including better infrastructure for telecommunications, as it prepares to host next year's Group of Eight summit.

Nonaka added that the government also wants to check the progress of public works projects. "The government should make a decision after taking those factors into consideration and holding extensive discussions with the coalition parties," he said.

Earlier this week, Finance Minister Kiichi Miyazawa hinted that the government is ready to budget more money to make sure that the economy does not lose steam in the autumn.

Nonaka's remarks confirmed the government's readiness to compile the second extra budget as part of its continued efforts to shore up the economy.