Tokyo: No Quick Fix
Though there's much talk of re-viving the stalled Japanese
economy, Prime Minister Morihiro Hosokawa's new Cabinet seems unlikely to push through a major stimulus package this year. New Finance Minister Hirohisa Fujii says he is considering tax incentives for housing and corporate investments and may push for more spending on public works. But he rules out the big one--income-tax cuts--anytime soon, despite campaign promises by several of the new coalition government's parties to enact them. Powerful bureaucrats in the Finance Ministry strongly oppose tax cuts in the face of dwindling government revenues.