By By Leika Kihara and Makiko Yamazaki
TOKYO (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)
