Japanese Prime Minister Shinzo Abe's Cabinet has approved a stimulus package of as much as 20 trillion yen ($224.28 billion) aimed at reviving the country's long-stagnant economy.

Funding for the plan, which still must be passed by parliament before it goes into effect, will partly come out of a 13-trillion-yen supplementary budget for this fiscal year.

In a press conference after the Cabinet meeting, Abe said the stimulus measures are projected to achieve real gross domestic product growth of 2 percent this year and create some 600,000 jobs.

The government specifically plans to spend 3.8 trillion yen to finance public works projects and speed up reconstruction of parts of the northeastern Tohoku region that were devastated by the March 2011 earthquake and tsunami.

To raise funds for the supplementary budget, the government plans to sell some 5 trillion yen worth of so-called reconstruction bonds.

In statements to reporters, the conservative premier said it is "extremely important" for Japan to overcome deflation and achieve "a society in which the hard work of its workers bears fruit."

Japan's economy, the world's third largest after the United States and China, is suffering from the impact of the global slowdown, persistent deflation and the consequences of a strong currency, which significantly hampers the competitiveness of its exports.

Abe, who governed Japan between 2006 and 2007, returned to power after his Liberal Democratic Party won the Dec. 16 general election in a landslide. EFE