Prime Minister Junichiro Koizumi told the Lower House plenary session Wednesday that the government will not hike taxes to mend Japan's debt-ridden finances, but will instead try to curb spending and the issuance of state bonds.
Responding to a question from Democratic Party of Japan leader Yukio Hatoyama over his policy speech Monday, Koizumi stressed his decision to limit the issuance of new government bonds to 30 trillion yen from the 2002 fiscal year budget and review expenditures.
Koizumi, who was swept into power after being elected president of the dominant Liberal Democratic Party last month, also set aside the possibility of compiling a supplementary budget for the current fiscal year that began last month.