Senior Cabinet members broke ranks Friday to criticize Prime Minister Junichiro Koizumi's plan to limit government bond issues to 30 trillion yen for this fiscal year.

"The strength of the economy is eroding, so it would jeopardize the planned structural reforms if we leave the economy alone without taking countermeasures," Takeo Hiranuma, minister of economy, trade and industry, told a news conference.

"Although things are proceeding on the presumption that the size of a supplementary budget will be limited to 1 trillion yen plus a few hundred billion yen, I question the effectiveness of spending on such a scale.

"It is doubtful whether the economy will even attain zero growth this fiscal year if things remain the way they are. If I get an opportunity to talk with Finance Minister Masajuro Shiokawa, I have something to tell him as a statesman."

Foreign Minister Makiko Tanaka also questioned whether the bond cap was appropriate for this year in light of the economic deceleration.

Gross domestic product data released the same day gave a further indication of economic deterioration. The figures show a real 0.8 percent decline in the April-June quarter, translating to an annualized 3.2 percent contraction.

"It will be difficult (to stick to the 30 trillion yen cap) when we examine the realities of the economy," said Tanaka, one of Koizumi's strongest allies within the Liberal Democratic Party.

Chikara Sakaguchi, New Komeito member and minister of health, labor and welfare, said, "If we stick to the tenet of structural reforms, we will have to observe the upper limit of 30 trillion yen."

He added that, "The phrase 'the 30 trillion yen bond issue' should not take precedence over all other considerations and what is under scrutiny is how we should turn around the flagging economy."

Heizo Takenaka, minister in charge of economic and fiscal policy, said the GDP data "reaffirmed the economy is in a very severe situation," and said he was determined to prevent negative growth from "expanding in a spiral."

"In this situation, the 30 trillion yen framework for bond issuance is on a different level," Takenaka said.

The issue has divided the Cabinet, with other ministers speaking out in support of the spending limit.

Finance Minister Shiokawa told reporters the 30 trillion yen target should not be scrapped, while Defense Agency chief Gen Nakatani and Chikage Ogi, minister of land, infrastructure and transport, also threw their weight behind Koizumi's plan.

"We would prefer to implement measures to stimulate the economy without spending much money," Ogi said.

Koizumi initially said the government should impose the bond limit for fiscal 2002, but later revised the plan to take effect this year.

In the year to March 31, Japan plans to float 88 trillion yen in bonds, including 59.7 trillion yen of refinancing bonds. The difference, 28.3 trillion yen, is the net sum of bond issues.