Japan has issued a stimulus package worth 11.7 trillion yen ($US107 billion) to boost the country's economy.
The government hopes that it will help people cope with rising prices and stave off a recession.
The plan includes only 2 trillion yen of fresh government spending, with 9 trillion yen in loan guarantees and aid for small businesses.
It also includes discounts on motorway tolls, assistance to farms and help for part-time workers to find better jobs.
The measures do not include temporary income tax cuts advocated by the New Komeito Party, a junior coalition party.
Japan's economy is struggling: the economy shrank between April to June and will be technically in a recession if GDP contracts between July and September.
On Friday, data showed that industrial output rose by 0.9% in July, but economists said that the stronger-than-expected figure did not ease fears of a recession.
Other figures released on Friday showed Japan's unemployment rate fell from 4.1% to 4%, while core inflation rose to 2.4%.