The government is considering earlier implementation of its planned tax reductions and other economic pump-priming measures, Chief Cabinet Secretary Hiromu Nonaka indicated Tuesday.
Due mainly to delays in the placing or orders by local governments, the nation's economy remains under downward pressure despite the implementation of a 16.65 trillion yen economic stimulus package, Nonaka said at a morning news conference.
Referring to the upcoming meeting of finance ministers and central bankers from the Group of Seven industrialized nations early next month, Nonaka said, "We will consult with the Liberal Democratic Party on the possibility of compiling the second supplementary budget and earlier implementation of the planned tax reductions."
In his inaugural policy speech in August, Prime Minister Keizo Obuchi promised tax cuts worth well over 6 trillion yen -- specifically, 4 trillion yen in personal income and residential taxes starting in January, and the rest by reducing effective corporate tax rates beginning in April.
Meanwhile, the government has been working on a 15-month budget covering the period from January 1999 to March 2000, in line with the prime minister's call for "incessant" implementation of public works to ensure economic recovery.