The Cabinet on Friday earmarked ¥1.13 trillion in reserve funds to continue measures to cushion the impact of the coronavirus pandemic.
Of the total, ¥915 billion will be allocated to a cash benefit program of up to ¥2 million each to small and midsize firms that have seen a sharp drop in sales due to social restrictions implemented to slow the virus's spread.
"The Cabinet decided to use the reserve fund to ensure that the government can smoothly implement some countermeasures that are expected to run short of necessary funding," Finance Minister Taro Aso told a news conference after the Cabinet decision.