Japan's government on Friday signalled its readiness to pursue flexible fiscal spending next year to offset risks to economic growth.
The risks to the outlook for the world's third-largest economy in the wake of rising trade tensions and a growth slowdown globally could add pressure on the government to boost spending ahead of a planned sales tax hike in October.
In a long-term fiscal policy roadmap approved by cabinet on Friday, the government said it stands ready to take flexible macro-economic policy steps "without hesitation" if a downturn in overseas economies poses risks to Japan's economy.
The pledge came after Bank of Japan Governor Haruhiko Kuroda told on Thursday the government and the central bank must cooperate with each other to achieve sustained growth.