UPDATE 1-Japan Fujii:may announce plans for new stimulus-Kyodo

Mon Nov 16, 2009 2:37am GMT
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(For more stories on the Japanese economy, click [ID:nECONJP])

* Extra budget to include support for jobs, environment

* Kan: strong GDP won't lead to cut in extra budget (Adds Kan quotes, details)

TOKYO, Nov 16 (Reuters) - Japanese Finance Minister Hirohisa Fujii said on Monday the government may announce details of an extra budget as early as Monday, Kyodo News reported.

The new Democratic Party-led government is compiling extra stimulus spending plans to support growth.

National Strategy Minister Naoto Kan said his office would set the direction on Monday or Tuesday in crafting the plans as well as the annual budget for the fiscal year starting next April.

Japan's economy grew at its fastest pace in more than two years in the third quarter, but analysts said the spurt may be short-lived as falling wages reduce the lure for consumers of government subsidies on cars and electronics. [ID:nT339912]

Kan, who has previously said the extra budget may total 2.7 trillion yen ($30.12 billion), also said on Monday that the better-than-expected GDP data wouldn't lead to a cut in the size of the extra budget.

Both ministers said the extra budget will cover measures to stimulate the economy in areas centring on employment and environment.

Kan added the government will also focus on measures to support child-rearing and technology in compiling 2010/11 budget to shore up a fragile economy. ($1=89.64 Yen) (Reporting by Stanley White and Tetsushi Kajimoto; Editing by Hugh Lawson)

 
 
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