Japan government plans direct spending of about 7 trillion yen in stimulus package - sources

TOKYO (Reuters) - The Japanese government is planning direct fiscal spending of around 7 trillion yen (51 billion pounds) to help fund an economic stimulus package totalling more than 28 trillion yen, two people briefed on the matter told Reuters on Thursday.

That amount - at just a quarter of the total package - could disappoint some market players bracing for bigger outlays given the massive headline figure, equal to more than 5 percent of gross domestic product.

The total package, to be approved by Prime Minister Shinzo Abe's cabinet next Tuesday, also includes 6 trillion yen for a fiscal loan and investment programme aimed at spurring private-sector spending such as for construction of a "maglev" train line, the sources said. They spoke on condition of anonymity because the plan has not been finalised.

The remaining 15 trillion yen will come from quasi-government financial institutions that provide loans, loan guarantees and subsidies to private-sector firms, they said.

Following a big election victory this month, Abe instructed his government to craft a stimulus to revive an economy dogged by weak consumption and investment despite three years of his "Abenomics" mix of hyper-easy monetary policy, spending and promised reforms.

(Reporting by Takaya Yamaguchi; Writing by Tetsushi Kajimoto; Editing by Chang-Ran Kim)