TOKYO, Reuters – Japan will review its timeframe for balancing the budget in the first half of next year, Prime Minister Fumio Kishhida stated on Tuesday. He dismissed any possibility that Japan could abandon the target to increase spending.

Last month, the government announced a $490 billion spending plan to help a fragile economy. This is in contrast with a worldwide trend of withdrawing stimulus measures for crisis mode.

Kishida continues to be under attack by influential members of his Liberal Democratic Party (LDP) who support big spending and have called for the abandonment of a budget target.

Proponents for fiscal reform including Taro Aso (ex-finance minister) created a new LDP panel on Tuesday to address steps taken to fix Japan’s fiscal house.

Kishida stated that both taking steps to combat the pandemic as well as restoring Japan’s fiscal health were compatible. He also said that Japan should have a sound fiscal policy.

Kishida stated that government officials will start to discuss whether or not the timeframe currently used for achieving the budget target is realistic.

Japan set out a timeframe to bring its primary budget back to surplus, exempting any new bonds and servicing costs. This is part of Japan’s efforts to curb its enormous public debt.

After several attempts to extend the deadline, the last pledge was for a primary balance surplus by fiscal 2020. This target has been subjected to revision due the economic pain that is being caused by COVID-19.

Kishida repeatedly stated that while Japan’s immediate focus is to increase spending in order to fight the pandemics, Japan should also have a plan for the long-term to repair its crumbling finances.