TOKYO (AFX-ASIA) - Prime Minister Junichiro Koizumi said the government aims to reach agreement on revising the use of the 5.8 trln yen special road fund, currently limited to road construction-related activity, before the Upper House elections July 22.
"We want to get a consensus among the ruling coalition parties on reviewing the use of the special road fund before the election," Koizumi told reporters at his official residence.
"After the election, we would like to have details on how to expand the use of the special road fund. If we fail to review the fund, we could not possibly compile the year to March 2003 national budget," he said.
Koizumi said the compilation of the budget will include a major review of government-linked and -funded companies aimed at deciding which should be privatised, liquidated or merged, as well as the level of necessary subsidies.
"We are considering reviewing all goverment-linked special purchase corporations to examine the possibility of future privatisation, termination or merger," he said, noting: "The mass media is focusing only on reviewing road construction corporations.
"We will scrutinise the current provision of subsidies to public corporations to eliminate unnecessary spending, bringing together the total sum of the cuts by the end of this year.
"The results will be reflected in the budget for the next fiscal year."
Koizumi said the government's near-term economic policy initiatives, as discussed by the Council on Economic and Fiscal Policy, will focus on the labour market due to an expected rise in unemployment as restructuring gathers pace.
"The government's near-term economic policy will focus on labour measures because, in the process of promoting economic reforms, the numbers of jobless is expected to increase and they will need new employment," he said.
"Another focus will be measures to foster new growth industries that will help absorb unemployed workers," Koizumi said.