Finance Minister Masajuro Shiokawa apparently backtracked Tuesday on his weekend assertion that Japan's economy will grow 1 percent in fiscal 2003.
"It is not a government policy nor a promise. . . . It was not a Cabinet decision and I only presented a goal," Shiokawa said.
The government will revitalize the economy and carry out structural reforms in line with this goal, he said.
Shiokawa told his partners at a meeting of finance chiefs from the Group of Seven industrial powers in Ottawa on Saturday that Japan will post zero growth in fiscal 2002, which begins April 1, and 1 percent growth in fiscal 2003.
Chief Cabinet Secretary Yasuo Fukuda said earlier Tuesday, however, that Shiokawa's comment should not be interpreted as an international pledge.
"It's better to call it a general goal," the top government spokesman said.
According to the midterm fiscal and economic outlook released in January, the government is expecting to post an economic contraction of 1 percent in fiscal 2001, zero growth in fiscal 2002 and real growth of 0.6 percent in 2003.
No injections planned
Financial Services Minister Hakuo Yanagisawa said Tuesday he has no current plans to inject troubled banks with public funds as part of a government drive to combat deflation.
"I have no such plans at the moment," Yanagisawa told a news conference.
"I believe banks can overcome their bad-loan problems if they carry out their existing programs without fail."
Commenting on a plan floated by some senior lawmakers within the Liberal Democratic Party to force banks to accept injections of public cash, Yanagisawa said he is not in favor of such a move.
"Under the principles of free economy, such a plan seems unfeasible . . . especially when you take into account such fundamental problems as property rights," he said.
