Japan unveils new stimulus package

Japan's government has unveiled 81 billion US dollars in new stimulus spending. The aim is to keep the world's second-largest economy from lurching back into recession.

Graphic showing the breakdown of the Japan's 274 billion dollar  stimulus package announced by the government Tuesday.(AFP/Graphic)

Tuesday's announcement includes measures to bolster employment, extend consumer incentives to buy eco-friendly products, and provide support for small and medium-sized firms hurt by the strong yen.

The new deal is Prime Minister Yukio Hatoyama's first major policy move since his Democratic Party swept into power this summer. They promised help for workers and families. Since then, the country's economic turnaround has come under threat from intensifying deflation and a powerful yen.

Finance Minister Hirohisa Fujii says he expects the Cabinet to approve the supplementary budget next week. He also warns that Japan's public debt, the largest in the world, will surpass revenue for the first time since 1946. The finance minister concludes that the tax shortfall will likely push government bond issuance to a new record high.