Prime Minister Suga Yoshihide plans to ask local governments to consider implementing partial limits on spending stimulus campaigns as Japan faces a resurgence in coronavirus cases.
Suga made the remarks at a meeting of the government's coronavirus task force on Monday.
Referring to the recent flare-up of infections, which marked a record number of daily cases, Suga said his government will continue providing virus tests in a massive and concentrated manner and sending experts to necessary areas.
He also said the government will take effective preventive-measures that can "co-exist" with social and economic activities.
The prime minister said the government will financially assist local governments when they subsidize businesses in virus hot spots that agree to limiting their business hours and other measures. Suga added that the government will allocate a budget of about 480 million dollars for this purpose.
The prime minister also said he will ask prefectural governors to partially limit the "Go To Eat" subsidy campaign aimed at promoting the use of restaurants, in areas where infections are surging again.
He said for example, group meals with five people or more, including those with family members, may be excluded from the campaign.
Suga instructed relevant ministers to closely coordinate policies with local governments. He also urged the public to continue taking anti-virus measures, such as wearing masks and avoiding infection-prone situations.