Prime Minister Shinzo Abe's Cabinet on Saturday endorsed an economic stimulus package worth around ¥3.5 trillion aimed at revving up rural parts of the nation beset by inflation caused by the April 1 consumption tax hike and the yen's plunge under "Abenomics."

One pillar of the stimulus package is a new subsidy scheme designed to offset fuel costs and help towns, villages and prefectures carry out steps to invigorate their communities at their own discretion.

Abe's deflation-busting growth program, based on drastic monetary easing and massive fiscal spending to stoke 2 percent inflation, and the elusive structural reforms, have improved the profitability of export-oriented manufacturers and doubled Japanese stock prices since he took office in December 2012.