Coalition party senior officials see government draft budget as negative to economy

Although parliamentary discussion on the draft government budget for the next fiscal year starting in April has not begun yet, senior ruling party officials are already expressing doubt that it will be effective for economic recovery.

Key officials of the three parties of the ruling coalition are publicly predicting that the government plan will have an adverse effect on economic recovery, revealing contradictions and defects of the Koizumi Cabinet's "structural reform" plans.

Liberal Democratic Party Policy Research Council Chair Aso Taro's comment has appeared on his website. He estimates that the national budget, if enacted, would exacerbate the economic recession.

LDP Secretary General Yamasaki Taku on an NHK interview program stated that the austere budget will militate against the economy, adding that the "structural reform" policy is destined to have a negative effect on the economy.

Takeshi Noda, New Conservative Party leader, did not hesitate to state that an extra budget will be necessary to supplement the FY 2002 budget, which will be discussed in parliament from late this month.

Komei Party Representative Kanzaki Takenori also called for a supplementary budget.

Akahata on January 8 said that the ruling parties are irresponsible, citing their wish list made up of increased funding for wasteful public works projects while doing nothing to stop corporate restructuring and medical and other social services cuts. (end)