The ruling Liberal Democratic Party's top policymaker on Wednesday urged the government to draw up a supplementary budget of more than 10 trillion yen to spur economic growth.
Shizuka Kamei, chairman of the LDP's Policy Research Council, made the comment to Economic Planning Agency Director General Taichi Sakaiya and top bureaucrats from the Finance Ministry.
Kamei told reporters Wednesday that he had informed Sakaiya of the need for an extra budget of more than 10 trillion yen to give the economy added impetus -- including around 5 trillion yen in direct fiscal stimulus.
Kamei and Sakaiya reportedly agreed on the need for a supplementary budget.
Kamei made the appeal because the LDP is hoping the extra budget will be spent on a plan by Prime Minister Yoshiro Mori to promote information technology, as well as on environmental conservation, the aging society and urban infrastructure development.
While agreeing on the need for an extra budget, Sakaiya refused to specify its scale before seeing preliminary gross domestic product results for the April-June quarter, scheduled to be released in early September, Kamei said.
"Although we have not reached an agreement with the Finance Ministry (on the scale of the budget), we will need a supplementary budget that may be somewhat smaller than last fiscal year's to get the economy on track toward 2 percent growth," Kamei said.
The government wrote a second supplementary budget of around 18 trillion yen in the previous fiscal year in an attempt to pull the economy out of recession.
The government is expected to submit a supplementary budget to the extraordinary Diet session that is scheduled to convene in September.
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