* Cabinet approves record 88.5 trillion yen budget

* Budget will finance part of 12 trillion yen stimulus package

* Main opposition party defiant, calls for snap election

* Government says to carry out tax reform in 2011/12

* Overall spending up 6.6 pct, tax revenues down 13.9 pct (For more stories on the financial crisis click [ID:nCRISIS]) (Fixes Toyota stock code in paragraph 13)

By Hideyuki Sano and Isabel Reynolds

TOKYO, Dec 24 (Reuters) - Japanese Prime Minister Taro Aso tried to put a rocket under the stricken economy on Wednesday, announcing the country's biggest ever annual budget, as fear mounts that Japan faces a long recession.

However, the fate of the budget is clouded by Aso's sinking public support rates and weakening control over his Liberal Democratic Party, which analysts say is at risk of losing a lower house election that must be held by next September.

The budget for the fiscal year starting next April, along with two other extra budgets for the current year, will finance Aso's 12 trillion yen in fiscal stimulus programmes, which amounts to more than 2 percent of Japan's gross domestic product.