Japan PM:shouldn't issue deficit bonds for pledges

TOKYO, Sept 1 (Reuters) - Japanese Prime Minister Naoto Kan said on Wednesday that deficit financing bonds should not be issued merely to carry out the ruling Democratic Party's campaign pledges.

"I will try to implement policies promised in our campaign manifesto, but we should not increase new issuance of deficit financing bonds just to carry them out," Kan said on Japanese public broadcaster NHK. He denied, however, that he had shifted to a fiscal tightening stance.

Kan will be challenged by party powerbroker Ichiro Ozawa in a Sept. 14 ruling party leadership race and the winner of the vote will likely become premier by virtue of the Democratic Party's majority in parliament's powerful lower house. (Reporting by Yoko Kubota and Yoko Nishikawa; Editing by Sanjeev Miglani)