In the wake of uplifting the national economy, the government of Japan has approved another stimulus package worth 1.2 trillion yen.

The move is aimed at slowing down recession effect on Japan's economy. The Japanese Cabinet said that the package will be funded from the reserves of the fiscal budget 2012 and shall be spent to create more employment opportunities, social security and supporting small and medium sized businesses.

As per the data released by the government, Japan's economy came down by 3.5% in the third quarter of the year and the GDP figures in the current quarter are suggesting Japan's entry into recession.

The cabinet is, therefore, planning to spend a huge amount to help Japan out of recession. It is the second time that such package is being approved. It will expectedly create some 120,000 jobs across the country and uplift the GDP figure of Japan by 0.4% in a year.

"The latest stimulus package will a have positive impact on supporting the economy as they includes deregulation measures, outlays for rebuilding the disaster-hit areas and revitalization of the economy", said Koriki Jojima, the Finance Minister of Japan in a news conference on Friday. The package will put huge impact on the elections to be held on December 16.