• Kyodo

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Prime Minister Yoshihiko Noda will draw up a second fiscal stimulus package this month to boost the economy, while he is set to call a general election in December, officials said Thursday.

Noda confirmed the plan when he met with economic and fiscal policy minister Seiji Maehara at the prime minister’s office, the officials said. But how the emergency policy package, the second in two months, will be financed remains unclear.

It is believed the Cabinet can’t use reserve funds under the fiscal 2012 budget once the Lower House is dissolved Friday. Noda is expected instead to focus on deregulation and other measures that will not require any funding, though such steps may have little immediate impact on the economy.

Last month the government unveiled a ¥420 billion stimulus package using the contingency funds as the economic recovery halted on slowing exports and weak domestic consumption amid the global downturn. Noda then said a full-fledged package would follow in November.

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