With the economy in recession and public approval ratings low, Prime Minister Taro Aso signaled Wednesday that Japan must depart from the reformist fiscal policies pursued by former Prime Minister Junichiro Koizumi and his successors.
On Wednesday, Aso's Cabinet adopted a basic policy for forming the fiscal 2009 budget and stressed it is ready to draft more stimulus packages.
"The situation is different from (the 2001-06 Koizumi era)," Aso told reporters Wednesday.