Japan's Prime Minister Shinzo Abe bows as he is re-elected as prime minister at the Lower House of Parliament in Tokyo December 24, 2014.[Agencies]

TOKYO -- The Japanese government on Saturday approved an emergency economic stimulus package worth about 3.5 trillion yen (about $29.06 billion) to drive regional economies hit by higher prices due to sales tax hike and the yen's fast retreat.

The stimulus package is aimed at providing subsidies designed to offset rising fuel costs and help local governments carry out necessary measures to invigorate their communities at their discretion, according to local report.

Under the package, 9.96 billion dollars will be used to support consumers and companies, about 4.98 billion dollars for revitalization of local communities and some 14.11 billion dollars for disaster prevention and reconstruction, said Japan's Kyodo News.

An extra budget for the fiscal 2014, intended to fund the package, is slated for cabinet approval on Jan. 9 and the government will try to finance the supplementary budget from the fiscal 2013 budget and tax revenue in the current fiscal year.