TOKYO (AFX-ASIA) - Secretary General of the ruling Liberal Democratic Party, Taku Yamasaki, said the party will deal with current economic circumstances through flexible policies, including studying a possible supplementary budget.
Speaking after the deterioration shown in yesterday's Tankan survey of business sentiment, Yamasaki said the party will study compiling an extra budget in the next extraordinary Diet, or parliamentary, session beginning September.
"We will consider how to cope with the economy, taking a flexible approach, including the possibility of compiling a supplementary budget," he told a press briefing.
"We need to closely watch the developments of the economy, especially after the Upper House election" on July 29, he said. "Although at the moment I am not considering a supplementary budget, because this is a matter for the Diet, we can discuss it when the extraordinary session starts," he said.
Yamasaki noted the decline in capital investment forecast for the year to March 2002 in yesterday's Tankan survey, reflecting the deteriorating economic situation.
However, he added: "We expect companies to save themselves, without relying on the government's economic measures. Firms should aggressively set up venture businesses to cope with possible job losses resulting from restructuring."