Japanese business leaders on Friday welcomed the additional economic package announced by the Liberal Democratic Party, saying that steady implementation of those measures will lead to economic recovery.
Jiro Nemoto, chairman of the Japan Federation of Employers' Associations (Nikkeiren), said that the additional economic package is the one that Nikkeiren has repeatedly requested, and one that, along with the measures that the government has announced so far, can effectively work to stimulate the economy.
Jiro Ushio, chairman of the Japan Association of Corporate Executives (Keizai Doyukai), said now that the government's stimulus measures have been announced, it is time for the private sector to act. He said that financial institutions should especially work to stabilize the nation's financial system by utilizing these measures.
Shoichiro Toyoda, chairman of the Japan Federation of Economic Organizations (Keidanren), also welcomed the package and urged the government to implement it as early as possible. Commenting on whether the government should compile a supplemental budget for fiscal 1998 to accelerate economic recovery, Toyoda said early Diet passage of the fiscal 1998 budget within the current fiscal year is the priority for the nation's economy. "The government should do what it has to do within the current fiscal year, and then if necessary, they should start thinking about additional measures," he said.
Although he welcomed the package, Kosaku Inaba, chairman of the Japan Chamber of Commerce and Industry, said that the government will need to compile a supplementary budget worth at least about 10 trillion yen. Inaba said that the government should include large-scale income tax cuts as well as corporate tax cuts for the supplementary budget.