The Cabinet approved a second round of fiscal stimulus worth ¥880 billion that makes use of budget reserves as Prime Minister Yoshihiko Noda attempts to boost the economy before the Lower House election Dec. 16.
Combined with a first round of stimulus announced last month, the latest measures will increase gross domestic product by about 0.4 percentage point, the Cabinet Office said Friday. The package includes deregulation and other policies that won't require fresh spending, it said.
It is unusual to compile a stimulus package before an election. The move might draw opposition fire as a pork-barrel spending tactic to boost votes at the last minute.