The government will spend ¥1 trillion on a second round of fiscal stimulus as it tries to revive the economy before it slides into recession, Chief Cabinet Secretary Osamu Fujimura said Tuesday.

The measures will be paid for by tapping reserve funds from this fiscal year's budget, Fujimura said.

The government announced ¥750 billion in a first round of spending last month that also tapped reserves and special accounts in the budget.

Economic and fiscal policy minister Seiji Maehara said last week that using reserve funds won't be enough to support the economy and the government should compile a supplementary budget. Last Friday's dissolution of the Diet for the Dec. 16 election may restrict the government's ability to stimulate an economy that risks its third technical recession since 2008.

The economy will contract an annualized 0.4 percent in the September-to-December period, according the median forecast in a survey of economists by Bloomberg, after shrinking 3.5 percent in the third quarter.