Japan's Kan: govt sees bigger spending for stimulus

Mon Nov 30, 2009 8:34pm EST

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TOKYO Dec 1 (Reuters) - Japanese National Strategy Minister Naoto Kan said on Tuesday the government will need to spend more than previously planned for shoring up the economy and tackling problems caused by the yen's rise and deflation.

"The government previously aimed to allocate money from a frozen budget but it now intends to carry out fiscal spending as needed," Kan, who is also deputy prime minister, told a news conference after a cabinet meeting.

But he declined to give the specific size of a planned extra budget.

The government hopes the Bank of Japan will support the economy through monetary policy and live up to the government's expectations, Kan said. (Reporting by Rie Ishiguro) ((rie.ishiguro@thomsonreuters.com; +81 3 6441 1885; Reuters Messaging: rie.ishiguro.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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