30 October 2001, 08:49  LDP's Kyuma - Japan should focus on extra spending to boost economy

TOKYO (AFX-ASIA) - The ruling Liberal Democratic Party's acting policy chief Fumio Kyuma said the government should focus more on a fiscal investment and loan programme to keep the economy in positive growth for the next fiscal year. Such a programme is considered a political euphemism for a second budget. "The upcoming supplementary budget cannot help the economy," Kyuma told AFX-Asia in the parliament. "The government needs to use a fiscal investment and loan programme, as well as the so-called PFI approach and all possible measures to achieve positive growth," he said. Private Finance Initiatives are aimed at creating public works projects that will provide contracts for private-sector businesses. "Amid uncertainty over the impact of the September 11 terrorist attacks on the economy, the government is losing confidence in setting economic growth targets for the next fiscal year," Kyuma said. "However, the government must make efforts to secure positive growth."

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