24 August 2001, 15:44 Takenaka - Extra budget would promote reform, rather than aim to boost demand
TOKYO (AFX-ASIA) - State Minister for Economic and Fiscal Policy
Heizo Takenaka said that if the government decides to go ahead with a
supplementary budget it will be aimed at promoting reform, rather than
boosting demand.
He added that an additional budget should not be taken for granted,
even though the economy is in "dire straits."
The comments were published last night in a note issued by HSBC
Securities (Japan) Ltd, which carried out the interview with Takenaka
on Aug 15.
"If we do propose a supplementary budget, it will not be for the
purpose of stimulating demand, but to promote reforms," Takenaka said.
"We recognise that the economy is in dire straits. However, it has
been only four months since the initial budget was passed. A
supplementary budget should not be taken for granted."
Takenaka added that "such an assumption causes vague assessments of
budgetary needs and the wasteful, inefficient use of funds."
"We have yet to decide whether to implement a supplementary budget.
If we do, we shall clarify its content when the time comes. I hope
everybody will pay close attention to this issue," he said.
Asked how the government will balance demands for greater spending
with its goal of increased fiscal discipline, Takenaka said: "We could
implement the original budget for this fiscal year faster than normal."
He added: "But regardless of our measures, we would not adopt a
supplementary budget for the main purpose of boosting demand."
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