Tokyo, Nov. 6 (Jiji Press)--Japanese Prime Minister Sanae Takaichi said Friday that proceeds from the Bank of Japan's stepped-up sales of its exchange-traded fund holdings will be used to cover spending under a special investment quota that forms a key part of her government's growth strategy.

At a meeting of the Financial Affairs Committee of the House of Representatives, the lower chamber of the Diet, Japan's parliament, Takaichi said the money would be allocated to a new special government account for projects in areas deemed particularly important for economic security, under the special quota aimed at making Japan strong and prosperous.

The BOJ's payments to the national treasury are expected to increase as the central bank accelerates its unloading of ETFs.

"Additional proceeds (from ETF sales) are the fruits of Japan's growth," the prime minister said. "It's appropriate to reinvest them in crisis management and growth investments to achieve further growth."

She said the government has no plans to use the proceeds to cover an increase in resident tax deductions, a measure advocated by the opposition Democratic Party for the People.

[Copyright The Jiji Press, Ltd.]