Prime Minister Junichiro Koizumi agreed Thursday with his key economic ministers to compile an austere budget for the next fiscal year, which begins in April 2003, ministers said.
Koizumi discussed the issue with Finance Minister Masajuro Shiokawa and Heizo Takenaka, economic and fiscal policy minister, at the prime minister's office. Chief Cabinet Secretary Yasuo Fukuda was also present.
Among topics discussed were budgetary requests to be made to the Finance Ministry by other government ministries and agencies.
"I told the prime minister we cannot maintain fiscal discipline unless we make the size of next year's budget smaller than that of the current year," Shiokawa said after the meeting.
Takenaka said, "The prime minister instructed us to compile a budget that should be in line with the reform policy."
Fiscal conditions remain in the doldrums. For example, tax revenues in June fell 16.4 percent from a year earlier to 1.968 trillion yen, the 10th straight month of decline, the Finance Ministry said Thursday.
Tax revenues fall 16%
Tax revenues fell to 1.97 trillion yen in June, down 16.4 percent from a year earlier and the 10th straight month of decline, the Finance Ministry said Thursday.
Cumulative tax revenues for the fiscal year to June came to 2.82 trillion yen, down 23.5 percent from the same period a year earlier.
In June, income tax revenues fell 22.3 percent to 993.23 billion yen. Revenues from tax withheld from wages dropped 22.5 percent to 958.99 billion yen and revenues from tax on declared income slid 14.1 percent to 34.23 billion yen.
A ministry official said the substantial drop in income tax revenues stems largely from declines in tax levied on maturing long-term postal savings.
Corporate tax revenues for the month fell 27 percent to 216.03 billion yen.
Overall tax revenues for fiscal 2002 are projected at 46.82 trillion yen.