Despite growing calls for the government to spend more to stimulate the economy, Finance Minister Shoichi Nakagawa reiterated Wednesday his ministry currently has no plans to issue deficit-covering bonds. But he also indicated the tax revenue situation may make them necessary.
Nakagawa is one of the most outspoken advocates in the Cabinet for further stimulus, as opposed to fiscal and economic minister Kaoru Yosano. Nakagawa once openly mentioned the possibility of issuing deficit-covering bonds, but he later retracted it.
"We have no plans to issue deficit-covering government bonds," Nakagawa said in an interview with The Japan Times, vowing efforts to achieve the government's goal of restoring a primary budget surplus by fiscal 2011. But he acknowledged tax revenues are falling sharply.