The Japanese government has approved a fresh 10.3 trillion yen ($116bn; £72bn) stimulus package in an attempt to spur a revival in its economy.
The package will include infrastructure spending, as well as incentives for businesses to boost investment.
Tokyo estimates that the stimulus will boost Japan’s economy by 2% and create 600,000 jobs.
Japan’s economy has been hurt by a dip in exports amid slowing global demand and subdued domestic consumption.
The world’s third-largest economy is currently in a recession, having contracted for two quarters in a row.
“Unfortunately, the previous administration failed to work out how to boost growth and expand the economic pie,” Prime Minister Shinzo Abe said.
“It is vital that we have an economic strategy that can create jobs and raise incomes to sustain growth.”
Included in the spending package are plans to rebuild areas devastated by the earthquake and tsunami of 2011, support for regional economies, and more investment in education and social security.