Japan is unlikely to increase its official development assistance in fiscal 2003 despite growing international calls for more funds, government officials said Wednesday.

The government will compile a budget for fiscal 2003 in line with Prime Minister Junichiro Koizumi's policy of promoting structural reforms, the officials said.

They indicated that Japan's ODA will either level off from fiscal 2002 or decrease for the fourth consecutive year. Japan is the world's largest provider of aid to developing countries.

In fiscal 2002, the government plans to cut budget appropriations for ODA to 910.6 billion yen, down 10.3 percent from the previous year.

It will be the first time in a decade that ODA has been less than 1 trillion yen.

Japan's move to curb ODA has aroused concern among developing countries and international organizations. During his visit to Southeast Asia earlier this month, Koizumi heard local leaders speak anxiously about cuts to Japan's ODA.

U.N. Secretary General Kofi Annan, attending an international donor meeting in Tokyo on Monday and Tuesday for rebuilding Afghanistan, told Koizumi that Japan is expected to resume leadership in support of developing countries when it overcomes its own fiscal plight.

Koizumi replied that Japan needs to first carry out domestic reforms in order to play its international role and can only take on responsibilities matching its capacity.

Japan's economic recovery is important for international society, he added.