The ruling Liberal Democratic Party and the Liberal Party agreed Wednesday to use part of 500 billion yen in reserves for public works -- allocated in the initial budget for fiscal 1999 -- to build new bullet train lines, officials of the two coalition partners said.
Of the total, 155 billion yen will be spent on national projects, including 42 billion yen for the new shinkansen lines, while 146.7 billion yen will be used to reinforce social infrastructures, according to the agreement between the two parties.
Other expenditures include 136.2 billion yen for "urgent projects" such as those related to the Group of Eight summit to be held in Okinawa and parts of Kyushu in 2000. The remaining 62 billion yen will be spent on reconstructing disaster-hit areas.
Wednesday's decision was in line with Prime Minister Keizo Obuchi's campaign pledge earlier this month in which he said that once he is re-elected LDP president, he would use up the reserve fund to support the economy.
Speaking to reporters following a meeting with his Liberal Party counterpart, LDP policy chief Yukihiko Ikeda said the two parties selected projects that will have great or immediate effects in propping up the economy, as well as those that are expected to suffer budget shortages this fiscal year.
The government may make a formal decision on the use of the reserve fund by month's end.