TOKYO — Japan must fund any additional spending plans within its budget rather than issue more debt, the International Monetary Fund (IMF) said Friday, urging the government to get its fiscal house in order as the central bank starts to raise interest rates.

'Given the fact that monetary policy normalization is happening, it puts the onus on the fiscal side to actually embark on consolidation, which is, in my opinion, long overdue,' Krishna Srinivasan, director of the IMF's Asia and Pacific Department, told Reuters in an interview.