TOKYO (AFX-ASIA) - State Minister for Economic and Fiscal Policy Heizo Takenaka said he believes GDP growth in the year to March 2003 will be better than existing forecasts by private-sector institutions. "The figures of private institutions have not included the impact from the second supplementary budget," Takenaka told a regular briefing, adding that the government's forecast will assume some signs of recovery. The US economy is expected to show strong economic recovery in the second half of next year and this will contribute to the improvement in Japan. "I don't think the US will see a V-shaped recovery but a scenario that I maintain is that the US economy will show a bullish rebound in the second half of next year," Takenaka said. This morning's Nihon Keizai newspaper said the government will set a year to March 2003 GDP forecast of zero growth and nominal GDP of minus 0.9 pct. Several newspapers yesterday reported that the Cabinet Office was finalising a figure of minus 0.1 pct. Takenaka said he wants to attend the next Bank of Japan policy meeting to explain that the government's economic reform plans are proceeding and that the central bank and the administration must consider how to help the recovery. "I would like the BoJ to understand the need for further discussion between the government and central bank on the mid-term economic recovery." Takenaka added that he has not been asked by Prime Minister Junichiro Koizumi to increase taxes, such as consumption tax, as part of a plan to restructure the tax system. "I was asked by the prime minister to change the structure of taxation. We have no plan to increase taxes amid the current weak economic conditions."