Consumer confidence reaches 6 month low

According to Bloomberg, Japan Consumer Confidence Slumps to a Six-Month Low:

Japan’s household sentiment fell to a six-month low in December, indicating the need for measures to stimulate consumer spending and sustain a recovery from the country’s worst postwar recession.

The confidence index dropped to 37.6 last month from 39.5 in November, the Cabinet Office said today in Tokyo. The government lowered its assessment of the report, describing sentiment as “weak.”

Finance Minister Naoto Kan today urged lawmakers to pass a proposed 7.4 trillion yen ($82 billion) extra budget for the current fiscal year, saying it will contribute 0.3 percentage point to economic growth. Stimulus efforts implemented by the previous administration have begun to fade, signaling it is “far too early” to see a sustained recovery in consumer spending, economist Azusa Kato says.

Why is it the government should know better how much people should be spending? Why will the government going into debt make things better?