TOKYO - JAPAN'S Prime Minister Taro Aso on Friday told ministers to work out a second set of pump-priming measures by the end of the month as the economy teeters on recession, the government's spokesman said.

Mr Aso 'asked the ministers to think hard (about the measures) from the people's standpoint without considering what would benefit their ministries,' Chief Cabinet Secretary Takeo Kawamura said.

'He wants to draw it up in the week of (October) 27,' Mr Kawamura said, adding the ministers would work under the initiative of Economy and Fiscal Policy Minister Kaoru Yosano.

The upcoming stimulus package will be the second as fears of a recession grow in Asia's largest economy.

Japan's parliament on Thursday enacted an 1.81-trillion-yen (S$27 billion) supplementary budget as part of an 11.7-trillion-yen emergency package announced in late August.

The extra spending plan includes measures to help consumers, companies and farmers cope with high fuel costs and a credit crunch. The rest of the plan consisted mainly of lending-related measures.

Mr Aso, a supporter of government spending to boost the economy, has set aside efforts by earlier premiers to reduce Japan's public debt, which is the highest among industrialised nations.

Japan's economy suffered its worst contraction in seven years in the second quarter of this year and many analysts believe it is already in recession, which is usually defined as two straight quarters of negative growth.

The opposition went along with the first economic package, hoping it would clear the way for Mr Aso to call general elections.

Parliament on Friday started debate on another key priority for Mr Aso - renewing a naval mission in the Indian Ocean supporting the US-led 'war on terror' in Afghanistan.

The opposition, which controls one house of parliament and is ahead in some opinion polls, has criticised the naval mission but said it would let it pass in hopes of an early election. -- AFP