The Cabinet approved ¥422.6 billion in emergency spending Friday to underpin the economy and prevent it from tipping into recession on waning domestic demand before the planned consumption tax hike.
The package, including financing from regional governments, totals more than ¥750 billion. It is the first in a series of steps aimed at spurring growth at a time when reconstruction-related demand following the March 2011 quake and tsunami begins to slacken.
"We will accelerate our efforts to ensure an early exit from deflation and revitalize the economy," Prime Minister Yoshihiko Noda was quoted as telling his ministers Friday by Chief Cabinet Secretary Osamu Fujimura.