Mired in a prolonged economic slump, major companies reported a record combined loss of 16.571 trillion yen over the one-year period through June, the National Tax Agency said Monday.

The figure, which is the highest recorded by the agency since it began compiling data in 1967, marked a 38.3 percent increase from the previous year.

The results were based on a survey of 37,577 large companies capitalized at 100 million yen or more.

Firms that generated profits in the year accounted for 48.6 percent of the companies surveyed, the second lowest figure on record, following the 47.9 percent recorded in the 1998 tax year.

The corresponding figure for the previous year stood at 50.5 percent of the companies surveyed.

Last year's profitable firms reported a combined taxable income of 23.29 trillion yen, down 19 percent from the previous year.

Of the companies that submitted tax returns, the tax agency investigated 3,866 for possible evasion during the period, eventually finding that 3,584 companies failed to declare a combined 591.7 billion yen in income.

This figure was down 6.9 percent from the previous year.

The companies failed to declare a combined income of 162.7 billion yen tied to their overseas trade.

Reflecting falling land prices, the home affairs ministry reported the same day that the nation's fixed asset tax revenues for fiscal 2003 will total 8.702 trillion yen, down about 385 billion yen, or 4 percent, from an earlier estimate.

METI budget advice

The planned extra budget for the current fiscal year should include measures to create demand and construct a safety net for small companies and employees at vulnerable firms, Seiji Murata, vice minister of economy, trade and industry, said Monday.

"There are many factors that should be incorporated (in the auxiliary budget), including not only mere safety nets but also measures that lead to creating demand such as technological development programs," Murata said at a press conference. "When considering the purpose of the comprehensive economic package (released last month), various economic problems should be addressed in just proportion."

Government and ruling party sources have said the extra budget for 2002 is likely to total 5 trillion yen, including 3 trillion yen in social security outlays, safety net measures and public works spending for "urban revival."

But calls are growing among ruling coalition lawmakers for big spending to boost the economy, with some urging that a 10 trillion yen extra budget be crafted.

Prime Minister Junichiro Koizumi, who had been reluctant to compile an extra budget in view of fiscal discipline, is now set to issue formal orders later this month to start work on an extra budget but is believed to be hoping to keep it as small as possible.