Tokyo/ New Delhi: In the biggest spending boost since the financial crisis Japan's cabinet approved on Friday approved an economic stimulus of USD 117 billion, a news wire reported on Friday.
The government expects the stimulus to raise real economic growth by 2 percentage points and create 600,000 jobs.
The government will spend 10.3 trillion yen ($116.8 billion) on public works, incentives for corporate investment and financial aid for small firms to help the economy emerge from a mild recession triggered by falling exports last year.
The stimulus package is part of a 13.1 trillion yen extra budget for the current fiscal year to March due to be approved by the cabinet next week. Abe is gambling that a shift to a more expansionary fiscal policy and more monetary easing from the central bank can end years of stop-start growth.
With Agency Inputs
First Published: Friday, January 11, 2013, 10:45