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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Japan LDP tries to steal opposition policy thunder Fri Jul 31, 2009 2:59am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Linda Sieg TOKYO (Reuters) - Japan's main ruling party, facing possible defeat in an election next month, looked set to try to steal some of its opposition rival's policy thunder on Friday with a pledge to boost household income and revive the economy. Japanese media have said the Liberal Democratic Party (LDP) would promise in a campaign platform to be unveiled later in the day to boost disposable household income on average by at least 1 million yen ($10,470) by 2020, and achieve economic growth of 2 percent by the second half of the fiscal year from April 2010. But the LDP is also expected to portray itself as the more fiscally responsible party, promising to repair the country's tattered public finances and, once the economy recovers, raise the 5 percent sales tax to help fund the growing costs of a fast-aging society, media reports said. Surveys show the LDP is at risk of losing to the opposition Democratic Party of Japan (DPJ) in an August 30 general election, ending more than half a century of almost unbroken reign by the business-friendly party. While an opposition win in the August 30 vote would not mean a drastic shift in policies, it would raise the chances of breaking a stalemate in parliament, where the Democrats and smaller allies control the upper house and can delay bills. HAVING IT BOTH WAYS The opposition Democrats have promised to put more money in the hands of consumers by such steps as providing child allowances, eliminating highway tolls and making gasoline cheaper to boost domestic demand. "Our stance is the same. We must make individuals more prosperous to boost consumption," LDP Secretary-General Hiroyuki Hosoda told a TV program. That prompted a sharp rebuttal from his Democratic Party counterpart. "It's not the same," said DPJ Secretary-General Katsuya Okada. "Budgets so far have been focused on organizations and industries to give money to the people indirectly ... We will give money directly to the Japanese people." Some analysts said the LDP, which has harshly attacked the Democrats as being profligate on spending and fuzzy on funding, risked itself being criticized if it tries to echo the opposition focus on consumers. "They are trying to do two things," said Koichi Nakano, a professor at Tokyo's Sophia University. "They are disparaging the Democrats ... as fiscally irresponsible. If they start to do something else because they are worried about the effectiveness of the DPJ campaign, they will look somewhat schizophrenic." Robert Feldman, chief economist at Morgan Stanley in Tokyo, said the LDP -- which has already backtracked on previous fiscal reform targets -- needed to spell out details of how it would reduce the public debt, already nearly 170 percent of GDP. "What are the methods for trying to achieve the new targets? All they have said is that they will make the economy better and then will hike taxes. That doesn't cut the mustard as an economic policy," he said. (Reporting by Linda Sieg and Yoko Nishikawa; Editing by Hugh Lawson) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Iran police break up memorial for protest victims also on reuters Full Coverage: Uninsured camp out for free healthcare Commentary: An abnormal recovery for housing market Former Wall Streeters take on new parenting roles More International News Myanmar court adjourns Suu Kyi verdict: sources Iran police break up memorial for protest victims | Video Honduran rulers insist Zelaya cannot be president Airbus urges sensor switch after crash Nigerian militant leader shot in police custody More International News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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