Prime Minister Naoto Kan's Cabinet on Tuesday endorsed an extra budget for this fiscal year to fund a ¥5.1 trillion emergency stimulus package aimed at fighting deflation and the surging yen.
The budget plan, which will be submitted to the Diet on Friday, includes financial support for regional economies and small businesses.
"The measures are aimed at preventing another dip in the economy triggered by the decline of the economies in Europe and the United States," said Chief Cabinet Secretary Yoshito Sengoku.