The ruling Liberal Democratic Party on Friday unveiled its fourth stimulus package, hoping to boost confidence in the economy before the March 31 end of the fiscal year.
The package also was designed to signal Tokyo's commitment to bolster its economy. But no stimulus measures requiring fiscal backing were mentioned. The unveiling comes just before a meeting of the finance ministers and central bank heads from the Group of Seven nations; it begins Saturday in London, and Tokyo is expected to take criticism for not doing enough to spur domestic demand and imports from crisis-hit Asian markets.
Senior party and government officials said it is impossible to outline any pump-priming steps, such as additional income tax cuts and public works spending, because Diet deliberations on the fiscal 1998 state budget have yet to begin. Any hint of additional fiscal stimulus steps would lead to calls from the opposition for the budget to be revised, which is unacceptable, Finance Ministry officials said. "But we are ready to keep on taking economic pump-priming steps if deemed necessary, bearing in mind various calls from the international community," Taku Yamasaki, chairman of the LDP's Policy Affairs Research Council, said upon announcing the measures.