Japan’s cabinet approved a stimulus package that’s slightly bigger than last year’s, as Prime Minister Shigeru Ishiba followed up on a pledge to ramp up support for households and businesses struggling to cope with higher costs.

Japanese Prime Minister Shigeru Ishiba said on Friday the government would compile a stimulus package of around 39 trillion yen ($253 billion) that will be funded by a supplementary budget it hopes to pass through parliament.

Parliament voted Monday to stick with Mr. Ishiba, who will lead a minority government after his party suffered heavy losses in an election last month.