A 20 trillion yen ($224 billion) stimulus package announced today by Japan's new prime minister Shinzo Abe will likely give the recession-struck economy a quick boost.

But it also risks adding to the country's huge debts without fostering sustainable, long-term growth.

The "Abenomics" strategy of "ultra" monetary easing and hefty government spending is bound to give the sagging economy a lift in coming months.

A strong economic recovery has eluded Japan for over 20 years since the bursting of its financial bubble in the early 1990s, and previous governments have faced criticism for failing to move aggressively enough to foster growth.

The rapid aging of the population, a shrinking workforce, the global crisis, natural disasters and a weakening of Japan's industrial competitiveness have hindered efforts to get growth back on track.

But the stimulus will add to Japan's massive public debt and could fuel wasteful spending on unneeded construction projects.

Abe said the measures are intended to spur a 2% point rise in real economic growth and create some 600,000 jobs. "We will break away from the chronically shrinking economy and aim to create an economy that can produce innovation and new demand that subsequently expand jobs and income," Abe said.

"To regain a strong economy, we need bold monetary policy and flexible fiscal policy,'' he added.

Japan's government debt is over 200% of its gross domestic product, the worst among the industrialised nations, though the country's massive savings and the fact that most debt is held domestically has prevented any serious trouble in its debt markets, so far.

With luck, the policy could help get the economy back on track for the short-term, analysts said, especially if recoveries in the US and China and a weakening of the Japanese yen against the US dollar provide extra help. But the impact in the medium and longer-term remains to be seen.

Japan's economy fell back into recession last fall as growth dragged due to weakening investment and the blow to exports from weak demand in Europe and China. Sales of Japanese cars and other products in China were hammered by anti-Japanese riots set off by a territorial dispute that has yet to be resolved.

The 20 trillion yen stimulus package includes 10.3 trillion yen ($117 billion) in central government spending, about half of which will go to public works. Abe denied that his party was relying on time-worn spending strategies that fostered corruption and waste during the Liberal Democrats' more than half-century in power after World War II.

A key aim is to promote reconstruction in northeastern coastal regions devastated by the March 2011 earthquake, tsunami and nuclear disasters. The government is also stepping up work on repairing and upgrading aging ports, tunnels, roads and other infrastructure - a priority that gained urgency following the collapse of a highway tunnel outside Tokyo in early December that killed nine people.

Among the dozens of other projects approved by the Cabinet today are measures and equipment to step up police and coastal patrols, improved safety precautions at nuclear power plants, facilities related to police, traffic safety and aging military-related buildings.

The package will support research into cutting edge technology and medicine, rare-earth recycling and undersea minerals and resources. It also includes funding for Japanese enterprises investing overseas and tourism promotion.