The government's top economic panel pledged Monday to keep recommending cuts in fiscal spending, including public works, despite the crushing losses the ruling coalition took in rural areas during the Upper House election.

While discussing spending caps for the fiscal 2008 budget, private-sector members of the Council on Economic and Fiscal Policy suggested cutting public works outlays by 3 percent from the previous year. The rest of the panel supported the number.

At a news conference after the session, Economic and Fiscal Policy Minister Hiroko Ota, who chairs the panel, said the 3 percent target is the council's conclusion.