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Japan PM pledges tax cuts, hits opposition
(Agencies)
Updated: 2008-09-29 15:00 Budget in Focus Chief Cabinet Secretary Takeo Kawamura acknowledged the unusually combative tone of Aso's speech. "It's a bit different from previous policy speeches, probably because of the election," he told a news conference.Aso, 68, pledged to implement temporary income tax cuts as emergency support for households struggling with an economic recession and high prices and said he would take extra steps if needed to deal with fallout from the US financial crisis. He urged the opposition to help pass a 1.8 trillion yen ($17 billion) economic package to help ease the pain of high energy and food prices. The steps, unveiled last month, include support for the elderly and credit guarantees for small firms. "Once again, I ask the Democratic Party and other opposition parties for your cooperation in parliamentary affairs." Analysts and domestic media have said Aso could use a refusal by opposition parties to pass the extra budget quickly as an excuse to dissolve the lower house and call a snap poll. Aso said he would put priority on economic growth ahead of efforts to rein in Japan's bulging public debt, the worst among advanced countries at some 150 percent of GDP, but added he would "make efforts" to meet a target of balancing the budget by 2012. "Without economic growth there can be no fiscal reform," Aso said. "It is impossible." Aso's stance has raised concerns among economists about a slowdown in efforts to slim down public debt. He also pledged to eradicate public anxiety about pensions and health care for Japan's fast-ageing population but stopped short of clarifying how to fund a creaking social welfare system. Most economists say a rise in the 5 percent consumption tax is inevitable, but politicians on both sides are wary of angering voters by spelling out their stance. Aso attacked the Democrats for opposing Japan's refuelling mission in the Indian Ocean in support of US-led operations in Afghanistan and questioned party leader Ichiro Ozawa's insistence on U.N. approval for overseas military missions. A law to extend the naval refuelling mission expires in January. The government was forced to halt the operation for three months starting late last year due to opposition stalling. "The exit from the fight against terrorism is by no means in sight," Aso said. "At this time, Japan as a member of international society does not have the option to withdraw from such activities," he said. "Democratic Party, even so, do you think that is OK? I ask your views." |
