TOKYO (Kyodo) -- Japan's ruling Liberal Democratic Party and the smaller opposition Democratic Party for the People on Friday began discussions to find common ground over economic measures as Prime Minister Shigeru Ishiba eyes policy cooperation to manage his minority government.

The LDP headed by Ishiba will explore an idea proposed by the DPP of raising the income threshold for tax payments, currently at 1.03 million yen ($6,700), to 1.78 million yen to boost disposable income.

Friday's cross-party meeting was attended by the policy chiefs of each party -- Itsunori Onodera of the LDP and Makoto Hamaguchi of the DPP. The two parties decided to continue discussing the DPP's push for hiking the income ceiling next week, with the attendance of more officials in charge of tax issues.

If they reach a consensus, it would be the first specific case of policy-by-policy coordination after the ruling coalition lost its majority in the general election last month.

Still, there is a caution within the LDP about the DPP proposal out of concern that Japan's tax revenue would drop.

"We will deepen internal discussions within the LDP," Onodera told reporters after the meeting.

Ishiba plans to compile a new economic package to cushion the blow to households from the current cost-of-living crisis in the coming weeks.

The DPP is calling for curbing gasoline tax burdens and extending subsidies aimed at lowering energy prices, as part of economic support measures.

The prime minister will likely face more hurdles than before the election, now that the powerful Budget Committee of the House of Representatives is set to be chaired by a member of the main opposition Constitutional Democratic Party of Japan, in a symbolic move after the ruling camp lost majority control of the chamber.

The government must seek parliamentary approval of an extra budget for the current fiscal year to next March to fund the economic package.

While cooperation with the opposition camp is critical for Ishiba to run the government smoothly, he has dismissed the idea of expanding the ruling coalition outright. DPP chief Yuichiro Tamaki is also negative about joining the camp.

Ishiba and Tamaki are scheduled to meet Monday for one-on-one talks ahead of the opening of a special Diet session where the LDP chief is expected to be reelected as prime minister.

The DPP's party strength sharply increased after the election to 28 seats and the ruling camp can reach the majority threshold of 233 with its help.

The CDPJ is also courting the DPP, which has signaled its willingness to work with other parties on a policy-by-policy basis.