Japan's Chief Cabinet Secretary Yoshihide Suga, who is set to become prime minister this week, said on Sunday there was no limit to the amount of bonds the government can issue to support an economy hit by the coronavirus pandemic.

He also indicated that he could look to a third extra budget to fight the downturn caused by the COVID-19 pandemic if needed, adding the government had enough resources to tap at present.

"Only when we have economic growth can we push through fiscal reform. What's most important is to create jobs and protect businesses," Suga said on a television program.

"I don't think so," he said, when asked if there was a limit to bond issuance. "What's important now is to improve current [economic] conditions," he added.

Suga made the remarks on a program where he appeared alongside his two rivals in the ruling Liberal Democratic Party's leadership election, to be held on Monday.

Reuters