The Liberal Democratic Party and its two non-Cabinet allies came up with several budget-paring measures June 2, one day before a key fiscal reform report is due out.

Officials from the LDP, the Social Democratic Party and New Party Sakigake agreed to curb growth in social security spending during fiscal 1998 to 300 billion yen -- instead of the originally expected 800 billion yen, sources said.

They also agreed to cut public works spending between fiscal 1998 and 2000 for a total of 15 percent the fiscal 1997 level, the sources said.