The economy will grow 1.5 percent in real terms in fiscal 2015, with the downturn in crude oil prices expected to bolster corporate profits and the latest stimulus package standing by to prop up domestic demand, the Abe administration projected Monday.

In nominal terms, gross domestic product will expand 2.7 percent, the administration said, suggesting it believes the end of nearly two decades of deflation is coming into sight.

The growth forecasts will be used to calculate tax revenue estimates, which are the basis for compiling the budget. The Cabinet plans to approve the fiscal 2015 budget on Wednesday.