Kosaku Inaba, chairman of the Japan Chamber of Commerce and Industry, called on the government March 12 to give priority to economic stimulus rather than measures to rehabilitate its national finances.
Speaking before a Lower House Budget Committee hearing on the economy, Inaba proposed that the government conduct an additional 5 trillion yen income tax cut to stimulate the economy, the condition of which he described as "extremely serious."
He also called for a swift injection of public funds into financial institutions. Inaba told the hearing that the stalled economy is partly responsible for tightened credit policies, and called on the government to pass the fiscal 1998 budget as early as possible. He urged the government to follow this by compiling an additional stimulus package worth about 10 trillion yen.
He also said that medium-size and small companies in particular are facing a serious situation. Unless financial institutions lend enough money to businesses, the economy will worsen, he said.