Japan has agreed a 7.2 trillion yen ($US81 billion) stimulus plan designed to prevent the country's economy from slipping back into recession.
Japan's economy grew for the second straight quarter between July and September, but the return of deflation has sparked fears growth could stall, the BBC reports.
The strong yen is also holding back Japanese exporters.
The stimulus was due to be announced last Friday but was delayed after disagreements over its size.
It includes measures to bolster employment, as well as further subsidies to buy environmentally friendly electronics, cars and houses.
In addition, the government is planning loan guarantees for businesses.
