TOKYO, Dec 1 (Reuters) - The Japanese government plans to spend 1 trillion yen ($12 billion) on measures to support small and midsize businesses as it boosts spending in an extra budget for the year to March, the Nikkei business daily reported.
The government is expected to compile an economic stimulus package this week to shore up a fragile economy, which will aim to tackle problems caused by the yen's appreciation and by stock price falls following debt problems in Dubai.
Ministers had previously aimed for an extra budget of 2.7 trillion yen ($31 billion) by reallocating spending that the new government had frozen in a budget compiled by the previous government.
But National Strategy Minister Naoto Kan said on Monday that the extra budget would exceed 2.7 trillion yen.
As part of the stimulus, the government is planning to spend around 900 billion yen on environmental initiatives, including plans to build more recharging stations for electric vehicles, the Nikkei said.
The extra budget will also include non-spending measures to support small firms -- boosting loan guarantees by 6 trillion yen from the current 30 trillion yen and increasing an emergency lending facility by 4 trillion yen from 15 trillion yen, it said. ($1=86.34 Yen) (Reporting by Tetsushi Kajimoto; Editing by Edwina Gibbs) ((tetsushi.kajimoto@thomsonreuters.com; +81 3 6441-1829; Reuters Messaging: tetsushi.kajimoto.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))