Japan DPFP May Not Approve FY 2026 Budget

Tokyo, Jan. 12 (Jiji Press)–Yuichiro Tamaki, leader of the Japanese opposition Democratic Party for the People, has indicated the possibility that his party may not approve the government’s fiscal 2026 draft budget. Tamaki said, “I will not be able to guarantee” the DPFP’s approval of the budget if Prime Minister Sanae Takaichi intends to dissolve the House of Representatives, the lower chamber of the Diet, the country’s parliament, for a snap election at the start of the ordinary Diet session from Jan. 23. An early dissolution of the all-important chamber would violate an agreement between Takaichi’s ruling Liberal Democratic Party and the DPFP to realize the enactment of the budget by the end of this fiscal year through March, Tamaki also said. He made the remarks in a television program Sunday. Some LDP members are examining the possible early dissolution of the Lower House for a general election. Last month, Takaichi and Tamaki signed the agreement to raise the annual income tax threshold further to 1.78 million yen and pass the fiscal 2026 tax reform legislation and the budget, which are necessary to realize the threshold hike, within fiscal 2025. “If the LDP regains a majority, then again tax cuts would not be implemented,” he said. “If the dissolution is carried out while policy measures are put aside, (Takaichi) would be no different” from her predecessor, Shigeru Ishiba, Tamaki added. END [Copyright The Jiji Press, Ltd.]