Japan's finance ministry will abolish a nearly two-decade-old panel consisting of academics and corporate executives that has offered long-term proposals on fixing the country's worsening finances, two government officials told Reuters.

The move comes as huge stimulus packages to combat the coroanvirus pandemic add to Japan's already huge public debt which is the largest among major industrialised nations and twice the size of its economy.

The panel, which met about twice a year to debate Japan's fiscal policy and long-term debt issuance plans, will hold its final meeting on Thursday, the officials said on condition of anonymity as they were not authorised to speak publicly.

"Given the changing environment surrounding Japan's fiscal state, we need to reset discussions," one of the officials said.

Created in 2004, the panel served as a mouthpiece for the finance ministry by warning of Japan's worsening finances and calling for the need to prevent debt issuance from ballooning.

The panel's proposals formed a basis for discussions by a group of primary dealers and bond investors on how much debt Japan can issue without disrupting markets each year.