The draft budget, which is more than initially announced after Abe decided to provide ¥100,000 (£750/$934/€860) to all Japanese residents instead of ¥300,000 (£2,250/$2,800/€2,600) to households worst hit financially by the crisis, is expected to be given the green light on Wednesday (April 29).

Abe is also reportedly considering extending the state of emergency in Japan, which has reported over 13,000 cases and more than 370 deaths from COVID-19.

Japan is set to enter a deep recession and its economy is likely to contract for a third straight quarter from April to June as a result of the COVID-19 pandemic.

The country is still expected to cover additional costs following the postponement of the Tokyo 2020 Olympic and Paralympic Games to 2021, which has been a thorny issue in recent weeks and led to a public dispute with the International Olympic Committee (IOC).

Finance Minister Taro Aso gave a further warning on the economic impact of the virus today, Kyodo News reported.

"The virus infections have been exerting an enormous impact on the domestic and overseas economies, and the extremely severe situation is expected to continue until we can see signs of the outbreak coming to an end," Aso said.

IOC officials have claimed the postponement of Tokyo 2020 can help revive the Japanese economy.

John Coates, chairman of the IOC Coordination Commission for Tokyo 2020, said earlier this month the rescheduled Games can act as a stimulus to help kick-start the economy in the host country.