Takaya Yamaguchi, Kaori Kaneko

TOKYO (Reuters).- Japan’s Liberal Democratic Party wants government to provide jet fuel subsidies, and start a discount tourist campaign as part of a relief package. This was a draft that Reuters obtained on Thursday.

Fumio Kishida, Prime Minister of Japan has directed his cabinet to prepare measures that draw from budget reserves by April.

Officials familiar with the subject told Reuters that although the exact amount isn’t known, they hope to maintain a relatively small budget.

Instead, Kishida hopes to reveal a larger spending plan nearer to the July upper house elections. However, officials not authorized to talk to media declined to identify themselves.

LDP Party executives will present their proposal to the government on Thursday.

Analysts have reduced forecasts of the third largest economy in the world due to spikes in commodity and energy prices. A poll shows that it will grow by 4.9% per year this quarter. That is lower than the 5.6% forecast.

The draft proposal stated that developments in Ukraine were difficult to anticipate and prices are on the rise for many necessities. The draft proposition stated that we need to monitor market movements, such as recent declines in the yen.

The LDP as well as its coalition partner Komeito demanded that the relief package be quickly drafted. Komeito also demanded that an extra budget be prepared as soon as possible.

Komeito draft proposition stated that Japan’s economy might experience the worst postwar crisis.

($1 = 125.2700 yen)