A government advisory panel on Tuesday stressed the need to strengthen Japan's fiscal resilience after the Bank of Japan ended its negative interest rate policy earlier this year.

The Fiscal System Council, which advises the finance minister, warned in its written opinion that the country's finances, already the worst among developed countries, will deteriorate further if debt servicing costs swell.

The central bank in March raised short-term interest rates to a range of zero to 0.1% from minus 0.1%, its first rate increase in 17 years.