Japan's new government has pledged to slash corporation tax and beat deflation to achieve stable economic growth of 2% per year.
It said it aims to defeat deflation by April 2011, but revealed few details on how it would achieve this.
The government also said it would cut corporate tax from 40% to nearer 25%.
Earlier this week, the Bank of Japan announced plans for up to 3 trillion yen ($US33 billion) in loans to spur economic growth.
The BBC reports deflation has plagued the economy for much of the last two decades.
Japan's growth averaged 1.3% per year before the recession brought on by the financial crisis.
Japan also has high levels of sovereign debt. Plans for cutting borrowing levels are due to be announced next week.
The BBC reports new Prime Minister Kaoto Kan has made cutting the deficit his priority.
