The government's budget for next fiscal year won't set a spending cap on requests aimed at fighting the COVID-19 pandemic, Finance Minister Taro Aso said, suggesting the heavily indebted nation would ramp up efforts to revive the coronavirus-battered economy.

The government would ask ministries to keep requests for other spending in line with the current fiscal year's initial budget totaling a record ¥102.7 trillion, Aso said at a Cabinet meeting.

It would then set aside an unspecified amount of budget requests to respond to "urgently needed expenses" to battle the fallout from the coronavirus.