Japanese government is to effectively halt its spending cut policy in compiling the budget for fiscal 2009, in a bid to prioritize stimulus measures over efforts to improve the nation's fiscal health, government and ruling party sources said Wednesday.

The Cabinet of Prime Minister Taro Aso is scheduled to endorse basic guidelines in formulating the fiscal 2009 budget starting in April later in the day. Sources said the written spirit of the guidelines will be putting economic stimulus measures as priorities over budget cutting.

(Xinhua News Agency December 3, 2008)