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Japan's state budget set to be enacted in time for FY 2025
MAINICHI
| Maret 29, 2025
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TOKYO (Kyodo) -- Japan's ruling and opposition parties set the stage Friday for the enactment next week of a draft budget submitted by Prime Minister Shigeru Ishiba's government in time for the April start of the new fiscal year.
The draft fiscal 2025 budget, now totaling a record 115.20 trillion yen ($765 billion), has undergone a rare parliamentary process to reflect a change in the government's initial plan.
Having initially been passed by the House of Representatives in March, Ishiba abruptly shelved a plan to raise medical costs shouldered by patients, following resistance from opposition lawmakers and patients already receiving expensive cancer and other treatments.
The revision must now be approved by the House of Councillors before returning to the more powerful lower house.
Approval in the ruling coalition-controlled upper house on Monday is seen as certain. In the House of Representatives, where the coalition of the Liberal Democratic Party and the Komeito party no longer holds a majority, the change is set to be approved with the backing of the Japan Innovation Party in the opposition camp.
Japan has previously never had a lower house-approved state budget enacted after a modification in the upper house.
Lower house decisions take precedence over those of the upper house, meaning that the enactment of a state budget is guaranteed when the lower house gives its go-ahead.
Parliamentary deliberations have exposed the challenges faced by the minority government led by Ishiba, who will see his first full-year regular budget approved by parliament since becoming prime minister last October.
In the deliberations over the government's initial budget plan in the lower house, the ruling camp agreed to accept opposition requests for expanding subsidies to achieve tuition-free high school education and raising the income threshold for tax payments.
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