Prime Minister Shinzo Abe's government is pushing for a greater role for fiscal policy next year, according to draft guidelines for the 2017 budget seen by Bloomberg.
The government handed the document for Japan's initial budget for the fiscal year starting in April to the ruling Liberal Democratic Party on Monday, and it advocates more use of fiscal policy to help the economy in coordination with loose monetary policy.
Japan is among the many countries that are turning to fiscal spending to stoke sputtering economies, some after years of extraordinary monetary easing failed to achieve strong, sustainable growth. In the U.S., President-elect Donald Trump has promised to spend $550 billion on infrastructure and to cut taxes.