Japan’s cabinet approved a stimulus package that’s slightly bigger than last year’s, as Prime Minister Shigeru Ishiba followed up on a pledge to ramp up support for households and businesses struggling to cope with higher costs.

Japanese Prime Minister Shigeru Ishiba said on Friday the government would compile a stimulus package of around 39 trillion yen ($253 billion) that will be funded by a supplementary budget it hopes to pass through parliament.

Japanese Prime Minister Shigeru Ishiba's new minority government won backing on Wednesday from a kingmaker opposition group for an economic stimulus package, the party's chief said. On Wednesday the head of the smaller Democratic Party for the People (DPP) said it reached a deal to back the stimulus package drawn up by Ishiba's LDP and its junior coalition party Komeito.

Japanese Prime Minister Shigeru Ishiba is set to unveil a $140 billion economic stimulus package to address a range of challenges from inflation to wage growth, following his election promises to alleviate a cost-of-living crunch.

Japan's ruling coalition on Wednesday agreed with a key opposition party on the draft of an economic stimulus package, clearing a major hurdle for the $87 billion package designed to help cushion the blow to households from rising prices.