A key policymaker of the Democratic Party of Japan said Wednesday the DPJ plans to provide "first aid" to needy individuals, instead of to companies as the ruling Liberal Democratic Party does, if it wins the Aug. 30 general election.
But economic and fiscal policy minister Yoshimasa Hayashi criticized the DPJ's policies, which include cash benefits for families with children and an end to highway tolls, as being "too costly" and having a "touch of socialism."
Kohei Otsuka, vice chairman of the DPJ's Policy Research Committee, said the LDP's conventional policies based on the belief that supporting companies will lead to improvement in family finances have been a "failure."
"If we take power, we'll provide first aid to needy individuals," Otsuka said. "If their living (situation) gets better, that would boost demand and improve the economy."
Meanwhile, Hayashi said in a separate interview that the DPJ "says financial aid to households should help buoy consumption, but the party seems more (bent on) creating a big government that collects a lot of money and then hands out a lot. It has a strong touch of socialism."
The DPJ, which opinion polls have shown is well positioned to win the Aug. 30 House of Representatives election, unveiled late last month its manifesto, including the creation of a monthly child allowance for families of ¥26,000 per child.
If implemented in full, the party's initiatives would cost a total of ¥16.8 trillion in the fiscal year beginning in April 2013, and the LDP has criticized the DPJ's proposals, saying the source of funds was vague.