3 August 2001, 12:56  Takenaka - Govt to push reforms, keep watch on economy, market

TOKYO (AFX-ASIA) - State Minister for Economic and Fiscal Policy Heizo Takenaka said the government will push for structural reforms, keeping an eye on the economy and market movements. Takanaka was speaking to reporters after a meeting of the government's Council on Economic and Fiscal Policy to discuss next fiscal year's budget. "We need to pay more attention to the economy and market movements when we try to push for structural reforms, which will help spur potential demand in high growth industrial areas," he said. "In the budget for next year we will set no limits for ministries and agencies on expenditures in the seven major areas but other areas will have serious limits on requests," Takanaka said. The seven areas are information technology, urban revitalization, the environment, the ageing population, education, science and technology, and regional revitalization. "The government will lower the size of the next fiscal year's budget by cutting expenditure of 5.0 trln yen, then increase it by 2.0 trln, mainly in the seven areas," Takenaka said. The government will work out a timetable for structural reforms around end-August into early September, he said. "After working out the schedule, the government will start examining measures to reform the stockmarket, including tax revisions and creation of infrastructure." He added that the government will "work out a programme that accelerates the move to create a body to purchase banks' cross-shareholdings."

© 1999-2022 Forex EuroClub
All rights reserved