Japan okays 'unprecedented' recession budget

Japan's government Wednesday approved a record high budget, vowing to take "unprecedented" action to weather a painful recession which it expected would only get worse in the new year.
The cabinet sent to parliament an 88.55 trillion yen (980 billion dollar) budget for the year from April 2009 that covers tax cuts and cash rebates but slashes foreign aid and worsens an already ballooning debt.
"We need to take unprecedented measures when in an extraordinary economic situation," Aso told a news conference soon after his cabinet approved the budget.
"Japan cannot evade this tsunami of world recession. But by taking bold measures, we aim to be the world's first to come out of recession," he said.
He warned "conditions next year around the world to drop rapidly".
Japan's economy, the world's second largest, has contracted for two straight quarters as demand overseas dries up for its cars, electronics and other exports.
In only three months in office, Aso's own approval rating has plunged alongside the economy, with recent polls showing that the opposition is more popular than his long-dominant Liberal Democratic Party.