The Japanese cabinet has approved a new 10.3 trillion yen stimulus package to fulfil the governing party's campaign pledge to kickstart the faltering Japanese economy.
The package will include infrastructure spending and incentives for businesses to boost investment, the BBC reports.
Tokyo estimates that the stimulus will boost Japan's economy by 2% and create 600,000 jobs.
Japan's economy has been hurt by a dip in exports amid slowing global demand and subdued domestic consumption.
The world's third-largest economy is currently in a recession, having contracted for two quarters in a row.
Included in the spending package are plans to rebuild areas devastated by the earthquake and tsunami of 2011, support for regional economies, and more investment in education and social security.