FOCUS: Japan Ruling Bloc Uses “Power of Majority” over FY 2026 Budget

Tokyo, March 14 (Jiji Press)–Japan’s ruling bloc pushed the government’s draft fiscal 2026 budget through the House of Representatives on Friday by taking advantage of its “power of majority” in the lower chamber of the Diet, the country’s parliament, as Prime Minister Sanae Takaichi is adamant on securing its enactment by the March 31 end of the current fiscal year. The latest development came against widespread speculation that it would be very difficult for the Diet to pass the budget bill before the April 1 start of fiscal 2026 following the Lower House dissolution in January and the subsequent Feb. 8 general election for the all-important chamber. Opposition parties have intensified their criticism, calling the ruling bloc’s move a threat to fiscal democracy. The coalition is likely to face difficulties in budget debates in the House of Councillors, the upper chamber, where it lacks a majority. Shaking Foundation of Democracy “Limiting deliberations will greatly shake the foundation of democracy,” Shinichi Isa, public relations head of the opposition Centrist Reform Alliance, said in a Lower House plenary meeting Friday, criticizing the Diet steering by the ruling Liberal Democratic Party and its coalition partner, the Japan Innovation Party. An informed source said that behind the rapid pace of deliberations on the budget bill is the prime minister’s determination. Budget deliberations started about a month later than usual following the Lower House dissolution and the general election. Initially, many ruling coalition lawmakers believed that enacting the budget by the end of March would be “impossible.” In mid-February, however, Takaichi summoned LDP executives to the prime minister’s office and instructed them “not to give up on passing the budget bill within fiscal 2025.” Takaichi also reiterated this goal at parliamentary meetings, gradually changing the atmosphere within the ruling bloc. Shortest Deliberation Time since 2000 The ruling coalition holds three-quarters of the seats in the Lower House as a result of the Feb. 8 election. Normally, the Lower House Budget Committee spends 70 to 80 hours deliberating the government’s initial budget. This year, it spent only 59 hours, the shortest since the current deliberation format was adopted in 2000. Only two intensive deliberation sessions with the prime minister’s attendance were held, compared with five last year. Diet schedules are usually set through negotiations between the ruling and opposition parties. This time, however, Lower House Budget Committee Chairman Tetsushi Sakamoto, an LDP member, frequently exercised his authority to unilaterally make decisions. An LDP official suggested that Takaichi regarded the Lower House Budget Committee as a major hurdle, especially after remarks over a possible Taiwan contingency that she made at a meeting of the committee last November cooled Japan-China relations. As the showdown between the ruling and opposition camps deepened, Kazuya Shinba, secretary-general of the opposition Democratic Party for the People, told the LDP that the DPFP “would support the fiscal 2026 budget bill if voting is delayed until Monday. The prime minister rejected the proposal. Deadline for Provisional Budget Nearing The Upper House is set to open deliberations on the budget bill early next week, following its passage through the Lower House. The LDP-JIP coalition lacks five seats for a majority in the Upper House. The chamber’s Committee on Financial Affairs, with 25 seats, has only 12 ruling party members, meaning that it cannot be convened if opposition parties refuse to attend. After the draft budget was forced through the Lower House, the DPFP decided to oppose it at the Upper House. “We have no choice but to carefully seek cooperation from Team Mirai, the Conservative Party of Japan and other opposition parties,” a senior LDP official said. Even if voting does not take place at the Upper House, the budget bill will automatically be enacted April 12 under a constitutional provision. Concerned that this may fuel arguments that the Upper House would lose its raison d’etre, the opposition Constitutional Democratic Party of Japan and others have agreed to join Upper House debates from Monday. Still, the deliberation schedule at the chamber remains very tight. Unless the budget bill is enacted by the end of this month, the government must compile a stopgap budget. Given the time needed for the Finance Ministry to make preparations, however, the deadline is approaching quickly. “If something unexpected happens to cause a delay of even one day, it will become impossible to enact the fiscal 2026 budget bill within this fiscal year,” a senior LDP official in the Upper House warned. END [Copyright The Jiji Press, Ltd.]