Finance Chief Says Japan May Pass Additional Stimulus Packages

By Kyoko Shimodoi and Chris Cooper

Oct. 5 (Bloomberg) -- Japan's Finance Minister Shoichi Nakagawa said the government may form additional economic packages in addition to the current stimulus plan being suggested.

``A second, or third, package is possible,'' Nakagawa said today on Fuji Television's Hodo 2001 program.

Liberal Democratic Party officials are urging lawmakers to approve 1.8 trillion yen ($17 billion) of additional spending to help small companies cope with high oil and food prices before parliament is dissolved. Opposition and ruling party lawmakers haven't agreed on a timetable to debate the legislation.

``The political situation is important but to help Japan's economy improve we need to focus on a recovery,'' he said.

Nakagawa hasn't forgotten a promise of balancing the budget by fiscal 2011, he said separately today on Asahi Television's ``Sunday Project''

Former Prime Minister Junichiro Koizumi set a goal in 2006 of balancing the primary budget, which excludes interest payments, so Japan could start to cut debt that the OECD estimates is about 180 percent of the economy.

To contact the reporters on this story: Kyoko Shimodoi in Tokyo at kshimodoi@bloomberg.net; Chris Cooper in Tokyo at ccooper1@bloomberg.net