UPDATE 2-Japan finmin: will issue bonds due to tax shortfall

(For more stories on the Japanese economy click [ID:nECONJP])

* H1 corporate tax revenues in red 1st time since fiscal 1960

* 2009/10 tax revenues likely Y6 trln below initial estimate

* Kan:will compile medium-term fiscal reform plan next year (Adds comments by Kan)

TOKYO, Nov 4 (Reuters) - Japanese Finance Minister Hirohisa Fujii reiterated on Wednesday that the government would issue extra bonds to respond to a sharp fall in tax revenues in the year to next March.

"We will have to deal appropriately with a drop in tax revenues caused by the world economic recession over the past year," Fujii told a news conference after a cabinet meeting.

The Ministry of Finance has said Japan's corporate tax revenues fell into the red in April-September, the first half of the fiscal year, for the first time since fiscal 1960/61, due to the amount of tax refunds topping tax revenues as many companies fell into the red.

Fujii had already said the government could issue more bonds for the fiscal year to next March as tax revenues are likely to fall 6 trillion yen ($66 billion) or more below an initial estimate of 46 trillion yen. [ID:nT115581]

National Strategy Minister Naoto Kan also said the government would come up with a longer-term fiscal reform plan around May or June, after passage of the annual budget for the fiscal year starting on April 1.

Some analysts have said the government should have set out long-term fiscal reform plans to retain investors' confidence in the sustainability of Japan's tattered public finances.

Japan's total public debt is expected to reach 200 percent of GDP next year, according to the Paris-based Organisation for Economic Cooperation and Development (OECD). ($1=90.38 Yen) (Reporting by Tetsushi Kajimoto and Hideyuki Sano; Editing by Michael Watson)