Prime Minister Junichiro Koizumi reiterated Tuesday his resolve to avoid a deflationary spiral by compiling a second supplementary budget for fiscal 2001.
The government decided to compile the extra budget "to prevent the economy from deteriorating with increasing speed along with continuing deflation," Koizumi said at a plenary session of the House of Representatives.
He said Japan's economy had deteriorated further amid growing risks of a global recession since the Sept. 11 terrorist attacks in the United States.