Japanese Prime Minister Yukio Hatoyama's Cabinet approved Tuesday an additional budget plan to finance the 7.2 trillion yen (US$80.90 billion) stimulus package aimed at boosting Japan's ailing economy.

The new budget, to be submitted to the regular Diet session in January for approval, is aimed at providing accessible credit facilities for small and medium sized firms to address issues of debt and help increase productivity.

In addition the package, which will run for the year through March 31, will purportedly serve to help the nation's unemployment issue.

Financial incentives to encourage consumers to spend on environmentally responsible products have also been mentioned by the Cabinet as another way the new funds have been earmarked to help reenergize Japan's sluggish economy, according to the Cabinet.

The formulating of the budget for fiscal 2010 has seen the Cabinet reach a general consensus that the issuance of new government bonds to raise capital will not exceed the cap of 44 trillion yen (US$494.38 billion), although the Democratic Party of Japan (DPJ) is under increasing pressure, as with the original budget formulation, from their junior coalition parties, the Social Democratic Party and the People's New Party, to increase the fiscal ceiling to some 95 trillion yen (US$1.07 trillion).

The DPJ are keen for their fundraising initiatives to not be directly passed onto the taxpayer and are looking into ways to draw on special state reserves to make up the balance, rather than simply issuing more shares, reports have said.

The budget for fiscal 2010 prioritizes Japan's low birthrate and will provide further subsidies for new parents and the raising of children -- including grants for education.

Also in line with current DPJ policy, funds will be allocated to promote science and technology and the environment -- with special provisions being made for environmentally conscious companies, cars and homeowners.

The DPJ also plans to stimulate the employment market, although a clear roadmap for this endeavor has yet to be announced.

(Xinhua News Agency December 15, 2009)