It will now be put before the Japanese parliament, with the intention of the economic stimulus package being to improve employment, spending and growth rates in the country.
At the moment, the Japanese economy is struggling to deal with the twin problems of a strong currency and deflation, which has led to falling prices and consumers holding off from purchases in the hope of further drops, reports BBC News.
Meanwhile, the strength of the yen, currently at a 15-year high, is making exports more expensive for the country's businesses.
Earlier this year, Japanese prime minister Naoto Kan warned that the country's huge debts were putting its economy at risk.
"Like the confusion in the eurozone triggered by Greece, there is a risk of collapse if we leave the increase of the public debt untouched and then lose the trust of the bond markets," he said.
By Asim Shah