Finance Minister Masajuro Shiokawa suggested Sunday that a second supplementary budget could be drawn up for the current fiscal year that would break the government's 30 trillion yen cap on government bonds.
"If international coordination is needed to block a global recession, we'll take stimulus steps without sticking to the debt cap," Shiokawa said on a television program aired by NHK.
Shiokawa has repeatedly vowed to abide by Prime Minister Junichiro Koizumi's 30 trillion yen cap in fiscal 2001.
But ruling coalition officials and business leaders have said that the scale of the nearly 3 trillion yen supplementary budget for fiscal 2001 is too small to finance measures for helping the faltering economy.
Shiokawa also on the show that he would consider tax cuts as a possible stimulus measure during tax reforms for the next fiscal year.
"I would like to carry out drastic tax cuts to stimulate the economy and I would like to consider taxation to help support small and medium-size businesses and startup firms," he said.