The official decision on the amount of allocated funds is expected to be made on August 26.
According to the NHK TV channel, the Japanese government is preparing for participation of about 6,400 people in the state funeral for Abe, including high-ranking foreign officials.
Abe's state funeral on September 27 will be the second state funeral for a former prime minister since World War II. The first one was held in 1967 for Shigeru Yoshida.
Abe, 67, was attacked on July 8 in the Japanese city of Nara during a campaign speech. His killer, Tetsuya Yamagami, approached the politician from behind and fired two shots from a distance of about 10 meters (33 feet). Police said Abe was conscious after the shots, but during transportation his condition became critical. Later in the day, the Nara Medical University hospital pronounced him dead. His funeral and cremation took place on July 12.