After haggling with a junior coalition partner over the size, the Cabinet of Prime Minister Yukio Hatoyama on Tuesday announced a ¥7.2 trillion economic stimulus package aimed at lifting the sagging economy and overcoming deflation.
Some economists, however, doubt the set of new measures will have a sufficient impact and worry that the administration may be deviating from its efforts to rebuild finances that are believed to be burdened with the world's largest public debt.
The stimulus package includes ¥3.5 trillion to help regional economies, ¥1.7 trillion to shore up the economy, ¥800 billion for taking environment-friendly steps and ¥600 billion to deal with rising unemployment.