The Japanese government intends to compile a new stimulus package worth 2% or more of gross domestic product, Finance Minister Kaoru Yosano told reporters after meeting Prime Minister Taro Aso on Monday.

Accordingly, new fiscal spending would exceed 10 trillion yen. Details of the third package are likely to be finalized by April 10.

Last month, Aso instructed his cabinet to come up with a new economic package by mid-April aimed at drafting a supplementary budget for fiscal 2009 to combat the ongoing economic slump.

Aso has already announced two stimulus packages since September. In second stimulus package worth 23 trillion yen or $255 billion, 10 trillion yen was set-aside for tax cuts for homeowners and public financing. The first package, unveiled in October included measures worth 26.9 trillion yen or $300 billion.

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