The government said Tuesday it will delay a decision on whether to maintain subsidy programs to stimulate consumption, including the Eco-point system, given recent signs of economic recovery.
The Ministry of Economy, Trade and Industry will not initially include the funds necessary to keep the programs for the purchases of some energy-efficient appliances and environment-friendly vehicles in its fiscal 2010 budget request to the Finance Ministry, which must be submitted by Thursday, minister Masayuki Naoshima said.
But he indicated that doesn't mean the government will cancel the emergency programs, which were launched by the former administration.
Naoshima said METI can add such funds later, by around mid-December, into its request for the budget for fiscal 2010, which begins April 1.
"We are not yet in a situation to make a decision. We must watch the economic environment carefully a little more," said Naoshima, apparently considering the recent signs of economic upturn.
Separately, Environment Minister Sakihito Ozawa said he wants to continue the Eco-point program because it is "important in terms of the environment," adding his ministry will include the necessary budget in its initial request.
Under the Eco-point program, launched in May and effective through March, the government offers points to people who buy designated air conditioners, refrigerators and televisions. The points can be exchanged for other products and services.
J. Front profit down
Department store operator J. Front Retailing Co. said Tuesday its group net profit for the March-August first half of fiscal 2009 plunged 30.5 percent from a year earlier to ¥3.13 billion on sluggish sales at its Matsuzakaya and Daimaru department store chains.