Japanese PM rejects calls for resignation

http://sg.news.yahoo.com/ap/20090105/tap-as-japan-politics-4cec4ac.html

AP - Tuesday, January 6TOKYO - Increasingly unpopular Japanese Prime Minister Taro Aso rejected calls Tuesday for his resignation, insisting he needs to steer the world's second-largest economy out of recession.


Aso's support now stands at just 20 percent amid growing public frustration over his handling of the sluggish economy, but he said the nation must be patient.

"I am confident that the ruling party and I can implement effective measures to boost the economy," said Aso, who is president of the ruling Liberal Democratic Party.

Opposition lawmaker Yukio Hatoyama, meanwhile, demanded that Aso resign and call for snap elections, which must by law take place by September this year.

Hatoyama, a leader of the Democratic Party of Japan, demanded Aso scrap a plan to give a cash payout to every household, calling it "a great folly." The government hopes the cash payout, worth 2 trillion yen ($22 billion) _ or 64,000 yen ($700) per household of four _ will spur consumer spending.



Aso included the cash payment measure in a supplemental budget submitted Monday to parliament.

"The measure will have no economic impact. What is more, people don't even want it in the first place," Hatoyama said. "This is nothing but a waste of public money. If we can spend 2 trillion yen, we should use that money to help the unemployed and the elderly, and support medical expenses."

But Aso said the cash payment _ which he called "emergency assistance" _ will generate much-needed spending in the economy, which is expected to post no growth over the next year.

"By distributing money to households, we can see demand being stimulated and can expect economic effects," Aso said.

Along with a 4.8 trillion yen ($52 billion) supplementary budget that includes the 2 trillion yen cash payment, Aso's government is expected to submit a record 88.5 trillion yen ($962 billion) budget for the next fiscal year starting in April 2009 to the parliament later in the month.