Japan may draw up disaster relief spending by June 1 - sources

By Takaya Yamaguchi

TOKYO (Reuters) - Japan is considering compiling a supplementary budget in the parliament session to June 1 to fund reconstruction in its quake-hit south, senior ruling party officials said on Saturday.

Typically, the government takes up a supplementary budget at an extraordinary session later in the year but the earthquakes a week ago, which killed about 50 people, prompted quick action on a separate budget, they said.

The officials, from the Liberal Democratic Party and the Komeito Party, which form the ruling coalition, asked not to be identified because they are not authorised to speak to the media.

The disaster-related spending will be on top of a fiscal stimulus plan of up to 10 trillion yen ($89.46 billion) in extra spending that Prime Minister Shinzo Abe is expected to announce around the time he hosts a Group of Seven summit in late May.

The government has already set aside 2.3 billion yen from a 350 billion yen reserve fund for the 2016/17 April-March fiscal year for the disaster-hit region. In addition, it will offer 42.1 billion yen in regional tax subsidies.

The earthquakes on the island of Kyushu damaged at least 5,000 houses, forcing about 80,000 people out of their homes as of Friday, NHK reported.

($1 = 111.7800 yen)

(Reporting by Takaya Yamaguchi, Writing by Junko Fujita; Editing by Edmund Klamann, Robert Birsel)