Japan's prime ministerial hopeful Motegi aims to compile new stimulus package (updated)
04/09/2024 07:05
(Adds Motegi's comments, details of race; paragraphs 5-9)
By Leika Kihara and Makiko Yamazaki
TOKYO, Sept 4 (Reuters) - An official of Japan's ruling
party, Toshimitsu Motegi, said on Wednesday he would want to
compile a comprehensive stimulus package to ensure continued
recovery of the economy, as he threw his hat into the ring to
lead the party.
Such a step would follow measures compiled last November to
cushion the blow from inflation at an expense of more than 17
trillion yen ($117 billion), a move that could worsen Japan's
already tattered finances.
"I will ensure that conditions fall in place in half a year
where we can officially declare an end to deflation," Motegi
told a press conference, declaring his bid for the party
leadership later this month.
Since Japan's Liberal Democratic Party (LDP) controls
parliament, its leader becomes prime minister.
In that role, Motegi said, he would pursue a growth strategy
that would help the government pay for policies, such as higher
expected defense costs, without raising tax.
He would also aim to achieve nominal economic growth of
about 2.5% for the time being, followed by growth above that
level to keep real wages in positive territory.
However, Motegi was cautious about raising Japan's financial
income tax, saying it was "not the right policy direction".
Now secretary-general of the LDP, Motegi has held many
cabinet portfolios, from foreign affairs to trade and economy.
Although recent polls show he does not rank high on a
crowded list of expected candidates for the party's leadership
race, some analysts see him as a potential finance minister in a
new government.
($1=145.2100 yen)
(Reporting by Leika Kihara and Makiko Yamazaki; Editing by
Chang-Ran Kim and Clarence Fernandez)
((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters
Messaging: leika.kihara.reuters.com@reuters.net))