Japan PM vows to avoid double-dip recession

"The economy should not enter a double-dip recession and we won't let it happen," said Hatoyama, who took office in September.

In a televised new year address, he urged parliament to swiftly pass an extra budget to finance the planned spending, aimed at supporting a fragile economic recovery after the worst downturn in decades.

Hatoyama announced in early December a stimulus package including about 80 billion dollars in fresh spending.

The pump-priming measures include incentives for people to buy energy-saving products, as well as financial support for smaller firms and payments to struggling companies to keep staff on their payrolls.

The ruling coalition, which dominates parliament, aims to have the budget passed by the end of January so that it can concentrate on deliberations on a record trillion-dollar budget for the next financial year starting in April.

"I want to make my utmost effort to pass it as quickly as possible," Hatoyama added.