Finance Minister Masajuro Shiokawa said Tuesday he would consider compiling an extra budget to fight deflation should the ruling coalition submit specific proposals to this end.
"We'd like to examine (a supplementary budget) if there is a specific proposal," he said. "But we have to take more time to consider how to finance such spending and how to spend such money effectively."
The comment indicates a slight shift in Shiokawa's position. He has thus far rejected suggestions that he pursue additional fiscal stimulus measures, citing the country's massive budget deficit.
His latest remark came in the aftermath of the government's weekend announcement that it would bail out Resona Bank, the core unit of Japan's fifth-largest banking group.
The news rekindled fears over the fragility of the banking sector.
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