"Although this is an age-old tactic for winning votes, we think it won't do Japan any favors in the medium term," it said. Growth is becoming increasingly reliant on government support. Further stimulus could reduce the private sector's ability to pick up the slack in the future."

To finance the stimulus package, the government is dipping into its reserve fund. The government released a smaller package of 422.6 billion yen ($5.1 billion) in October in an effort to stave off recession.

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