Japanese Prime Minister Sanae Takaichi insisted that a $135 billion stimulus package approved Friday was fiscally responsible and that she would reduce the country's colossal debt burden.

The 21.3 trillion yen outlay comes as the government looks to kickstart growth in the world's number-four economy as people grow increasingly worried about rising prices.

However, expectations that the new premier would embark on a big-spending spree has pushed yields on Japanese government bonds to record highs this week and put pressure on the yen.

"Responsible proactive fiscal policy means a forward-looking fiscal strategy and does not aim to pursue scale recklessly or expansively," Takaichi said in Tokyo.

"By thoroughly implementing the concept of wise spending, we will strategically deploy fiscal

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