Japan PM formally announces $150-billion stimulus

TOKYO: Japan's Prime Minister Taro Aso on Friday formally announced 150 billion dollars in emergency stimulus spending to revive Asia's biggest economy as it heads for its worst crisis in decades.

A day after the ruling party announced the 15.4-trillion-yen injection -- worth three percent of Japan's gross domestic product -- the Aso cabinet gave it the green light.

"We are implementing a resolute policy in the form of economic crisis measures in order to protect the livelihoods of the people," Aso told a press conference shortly before he was to leave for a regional summit in Thailand.

"The first of our objectives is to prevent the economy from falling through the floor. Another objective is to give a sense of security to the people."

The plan includes money for clean energy generation, elderly and health care, employment support and the promotion of cultural products and tourism.

The spending -- which still requires parliamentary approval -- is part of a wider package worth about 56.8 trillion yen (570 billion dollars) when loan guarantees and other non-spending measures are included.

The plan was given the formal go-ahead by the cabinet at an early afternoon meeting, a cabinet office official told reporters.

The latest injection comes on top of stimulus measures approved by parliament since October that were worth a combined 75 trillion yen, of which actual fiscal spending was about 12 trillion yen.

Plummeting worldwide demand for Japanese cars, machinery and high-tech goods has put Japan on course for its worst economic slump since World War II.