The government has compiled the largest-ever economic stimulus package in the form of a fiscal 2009 supplementary budget, involving actual spending of ¥15 trillion. This is much larger than the past biggest stimulus package of ¥7.6 trillion, which the Obuchi administration compiled as a third supplementary budget for fiscal 1998.
The package indicates Prime Minister Aso Taro's desire to make Japan the first major economy to emerge from recession. To help Japan overcome a "once in a century" economic crisis, in which aggregate demand is ¥20 trillion less than aggregate supply, it is understandable that the government places priority on stimulating the economy rather than on financial reconstruction.
But it seems that the package's size is the result of demands made by the ruling parties, government ministries and business organizations, rather than through rational prioritization. It also includes policy measures that are obviously designed to win votes for the ruling party in the upcoming Lower House election. Other measures are aimed at raising Japan's status in the international community by showing that Japan is taking action to help end the global economic downturn.