The government and the Liberal Democratic Party will consider rearranging the fiscal 1999 state budget plan to possibly include 2 trillion yen in tax rebates and other measures requested by New Komeito, Chief Cabinet Secretary Hiromu Nonaka indicated Wednesday.
Speaking at a regular news conference, Nonaka said the government will consult with the LDP to consider proposals put forward by New Komeito, the second-largest opposition party.
Earlier in the day, Tetsuzo Fuyushiba, secretary general of New Komeito, visited Nonaka and urged that the proposed 1999 budget be revised, saying the plan as it stands now would be insufficient to cope with the serious economic conditions.
In a related move, Shozo Kusakawa, a New Komeito legislator in charge of Diet affairs, met with his LDP counterpart, Makoto Koga, to make the same requests.
Koga told Kusakawa that the LDP will cautiously examine the requests filed by New Komeito, according to party sources.
New Komeito's most important demand is that the government include a 2 trillion yen tax refund scheme targeted mainly at those with an annual income of less than 7.9 million yen. The party claims that under the current budget plan, some 60 percent of taxpayers would effectively end up with a greater tax burden.
New Komeito is also calling for greater monthly allowances for child-rearing families and expanding the scope of recipients.