TOKYO (Kyodo) -- Japan's parliament approved Tuesday a series of legislative changes aimed at restoring voter trust through abolishing "policy activity funds" that can be spent without disclosure and setting up a third-party oversight entity to monitor fund reporting.

The passage of the bills through the House of Councillors came on the final day of an extraordinary Diet session that was extended by three days to allow for extra deliberations. It marked the first Diet debate since Prime Minister Shigeru Ishiba's Liberal Democratic Party and its junior coalition partner, the Komeito party, transitioned to a minority government following the general election in October.

The LDP was forced to heed calls from emboldened opposition parties who demanded stricter rules on political funds in the wake of a 2023 slush funds scandal that continues to dog the ruling party.

The ruling and opposition parties will continue to discuss early next year whether to abolish donations from companies and other entities, as demanded by the main opposition Constitutional Democratic Party of Japan and others. The LDP, which relies heavily on such funding, remains opposed to an outright ban.

Ishiba described the Diet session as marked by "thorough discussions," noting he sought to build consensus as much as possible.

"We had to drop some LDP plans, but that's how it is because the ruling coalition does not have a majority," Ishiba said at a press conference. "What is important is making progress."

The changes, already approved by the House of Representatives, are intended to boost the transparency of political funds. Some LDP lawmakers had amassed what opposition lawmakers described as "hidden" war chests that had been accumulated from fundraising parties and not properly reported.

The ruling and opposition parties decided to abolish the "policy activity funds" lawmakers receive from their parties and can spend on research and efforts to expand support without disclosure. The CDPJ and other opposition parties proposed the change.

The LDP initially sought to exclude certain funds from disclosure requirements, citing the need to protect sensitive information related to diplomacy, national security and corporate activities. But it agreed to drop its proposal in the end.

A third-party entity will be created to look at how political funds are reported and demand corrective action when irregularities are found, a framework written into law by Komeito and the Democratic Party for the People.

The purchase of fundraising party tickets by foreign nationals and entities will also be banned.

Losing control of the powerful lower house has meant that the LDP-Komeito coalition needs to seek opposition cooperation on a policy-by-policy basis to pass bills and budgets.

The DPP, which increased its number of seats in the Oct. 27 general election, secured from the ruling camp an increase in the income tax threshold from the current 1.03 million yen ($6,500) as part of the party's drive to boost people's incomes.

During the parliamentary session, a 13.9 trillion yen supplementary budget for the current fiscal year through March was enacted following a rare revision prompted by a call from one of the opposition parties.