Japan may spend $150 billion to fight the deepening recession, as Asia's biggest economy confronts a fresh slump in trade and a surge in bankruptcies.
Tokyo has ordered extra public spending of at least 10 trillion yen ($100 billion) to revive the economy, and local media reported the figure could rise to as much as 15 trillion yen.
In total the package is likely to reach 56.5 trillion yen, including tax cuts and loan guarantees for small businesses.
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.
Japan's current account surplus more than halved in February from a year earlier as exports plunged, though that was an improvement on a record deficit logged the previous month, government data showed.
There were also fresh signs of pain in the corporate sector. Japanese bankruptcies rose 14.1% in March to a six-year high, a survey showed.
More than 1,500 companies collapsed with debts of 10 million yen or more each.
