Japan revs up stimulus engines, hoping to restore growth with spending on defense, innovation

Japan's ruling Liberal Democratic Party is in the final stages of drafting fresh stimulus spending reportedly totaling more than 20 trillion yen ($227 billion), rushing to fulfill campaign pledges to act more aggressively to break the world's third biggest economy out of its deflationary slump.

Economy minister Akira Amari and Prime Minister Shinzo Abe discussed details Thursday of the proposed stimulus package ahead of an announcement expected on Friday.

Abe took office last month vowing to make reviving the economy his top priority and promising support both to small businesses and big industries such as the auto sector.

The bulk of the spending will go to supporting industrial revitalization and reconstruction from Japan's March 2011 earthquake and tsunami disasters. It also includes plans to boost defense spending.