Prime Minister Yoshihiko Noda's administration is planning to compile a supplementary budget for the current fiscal year, possibly in the fall, to stimulate the economy, officials said.

The focus will be on measures to counter the strong yen and deflation as well as prepare for large-scale disasters and lessen their magnitude, the officials said Monday. One way to pay for the extra spending measures could be cutting the pay of local and prefectural government employees.

The administration will probably introduce the extra budget to the Diet during an extraordinary session expected in the fall, they said.

Noda, appearing Monday before a Lower House committee, indicated he is willing to compile pump-priming measures.

"Putting the economy on a firm footing will, in a big way, lay the ground for raising the consumption tax," he said.