A House of Councilors special committee Monday approved a 519.8 billion yen supplementary budget designed to generate 700,000 new jobs and cope with the falling birthrate.

The budget is expected to be enacted Wednesday at the house's plenary session with support from the Liberal Democratic Party, the Liberal Party and New Komeito. The LDP-Liberal coalition is moving toward bringing New Komeito into the bloc, but some policy differences remain.

Speaking at Monday's session, Prime Minister Keizo Obuchi said the government intends to introduce a new nursing-care insurance system for the elderly on April 1, as scheduled.

However, he said there remain problems that require further consideration, indicating the LDP plans further negotiations with the two other parties, including on how to fund the system.

Home Affairs Minister Takeshi Noda, the only Cabinet minister representing the Liberal Party, stressed the need to discuss with the LDP and New Komeito ways to finance the nursing-care insurance and pension programs.

Last Friday, Noda refused to sign bills to revise the nation's pension system, in response to the LDP's reluctance to review ways to finance the nursing-care insurance system.