(Update) Japan Lower House OKs FY 2025 Extra Budget

(The second paragraph should have read, “…Japan Innovation Party…,” instead of as sent. A substitute story follows.) (Update) Japan Lower House OKs FY 2025 Extra Budget Tokyo, Dec. 11 (Jiji Press)–Japan’s House of Representatives on Thursday passed the government’s draft supplementary budget for fiscal 2025, which will finance the first comprehensive economic package compiled under Prime Minister Sanae Takaichi, who took office in October. At a plenary meeting of the lower chamber of the Diet, the budget bill was approved by a majority vote, with support from the ruling Liberal Democratic Party and its coalition partner, the Japan Innovation Party, or Nippon Ishin no Kai, as well as the opposition Democratic Party for the People and Komeito. The budget bill is expected to be enacted as early as Tuesday, a day before the end of the current extraordinary Diet session, after deliberations in the House of Councillors, the upper chamber. Under the Takaichi government’s “responsible and proactive” fiscal policy, the draft budget features general-account spending of 18,303.4 billion yen, including funds to pay an additional child allowance of 20,000 yen per child. More than 60 pct of the extra budget will be funded with revenue from the issuance of new Japanese government bonds. At the Lower House plenary meeting, the DPFP voted in favor of the draft budget after the government decided to abolish the provisional gasoline tax surcharge. Komeito finalized its support for the bill at a party meeting earlier in the day. While three of the four members of Yushi no Kai, a group of independent lawmakers in the Lower House, voted against the bill, the other member, Keiro Kitagami, voted in favor. The LDP is asking him to join its group in the lower chamber The main opposition Constitutional Democratic Party of Japan and Komeito jointly submitted a motion to modify the budget bill. However, both the motion and a similar proposal submitted by opposition Reiwa Shinsengumi were voted down. Prior to the vote, the Lower House Budget Committee held intensive deliberations with Takaichi. The CDP’s Nobuhiko Isaka argued that the budget bill lacked sufficient measures to tackle inflation. In response, the prime minister asked for understanding, saying, “I think we have addressed many points made by the opposition this time.” END [Copyright The Jiji Press, Ltd.]