A top Liberal Democratic Party lawmaker said Sunday it is premature to quickly decide whether to compile a supplementary budget for fiscal 2002.

"It is too early to discuss the matter. It's inappropriate (to decide it now)," LDP Secretary General Taku Yamasaki told a TV program that aired in the morning.

Yamasaki was referring to growing calls from some lawmakers in Prime Minister Junichiro Koizumi's tripartite ruling coalition for an early formulation of an extra budget to shore up the economy amid tumbling stocks.

Yamasaki said the government should wait until September to decide whether to compile the budget because the course of the economy will be clearer by then.

"The leaders of the three ruling parties should meet in the second half of September to deal with the matter," he said.

Yamasaki added that it is also too early to discuss whether to postpone a plan to end a blanket government guarantee on all bank deposits next April.

"What should be done now is to streamline 'shinkin' small savings banks and credit associations, and infuse capital into these institutions to strengthen their financial standing," he said.

The government abolished a blanket guarantee on time deposits on April 1 by imposing a limit of 10 million yen per person per bank on the amount it will refund in the event of a bank failure.

It plans to end full refund guarantees on all deposits, including ordinary accounts, next April.

But many lawmakers within the ruling bloc are calling for a postponement of the plan, citing a possible flight of deposits to bigger banks from shinkin and other financially fragile banks.

Yamasaki said proposals such as raising the maximum refund limit to 30 million yen from 10 million yen and guaranteeing refunds of checking deposits beyond next March 31 should be discussed only after the financial bases of smaller banks are strengthened.

"Discussing whether to postpone the plan is a matter that should be addressed after these proposals are discussed," he said.