Prime Minister Shinzo Abe's new government is considering a supplementary budget worth about 12 trillion yen (136 billion dollars) to prop up Japan's economy, news reports said Monday.
Abe, who took office in late December, was discussing the size of the extra budget for the current financial year, which ends March 31, with lawmakers from his Liberal Democratic Party (LDP), the Kyodo News agency reported.
The government reportedly plans to announce a package of stimulus measures this week to combat Japan's decade-long problem with deflation and address the adverse effect of the strong yen, which makes Japanese exports more expensive.
The Japanese economy, the world's third-largest, slid into recession amid a strong yen, falling exports, the eurozone debt crisis and growing tensions with China, Japan's largest trading partner.
The LDP unseated the Democratic Party of Japan in December parliamentary elections as Abe promised stimulus measures and called for “unlimited” monetary easing by the Bank of Japan to prop up the economy. - Sapa-dpa