Japan’s Diet Begins Debate on Takaichi’s Budget Plans, ‘Proactive Fiscal Policy’

Yomiuri Shimbun file photo
The Diet Building in Chiyoda Ward, Tokyo, Japan.

Discussions over Prime Minister Sanae Takaichi’s flagship policies, such as “responsible and proactive fiscal policy,” and the timing for passing the fiscal 2026 budget were held during a question-and-answer session in the House of Representatives that started on Tuesday.

This session, the first Diet debate since the lower house election, followed Takaichi’s policy speech delivered on Friday.

The government and ruling coalition are seeking to secure passage of the budget before the fiscal year ends in March, but this has drawn a backlash from the main opposition party, the Centrist Reform Alliance, which insists that thorough deliberations are necessary.

At the question-and-answer session, Junya Ogawa, leader of the CRA, maintained that the government should not adopt a rigid approach focused solely on passing the budget within the current fiscal year.

He stressed that it was more necessary than ever to ensure sufficient time for thorough deliberation.

Ogawa questioned the prime minister on the necessity of a cross-party national council to discuss such issues as a consumption tax cut, asserting that open debate within the Diet was more important than such a body.

Representing the ruling bloc, Shunichi Suzuki, secretary general of the Liberal Democratic Party, and Hiroshi Nakatsuka, secretary general of the Japan Innovation Party, also questioned Takaichi.

Noting that markets are scrutinizing the sustainability of the prime minister’s “responsible and proactive public finances,” Suzuki inquired about her fundamental approach to fiscal management.

Nakatsuka, meanwhile, pressed for Takaichi’s commitment to reducing the number of lower house seats during the current Diet session.

Representative questioning is to be held in the lower house until Wednesday and in the House of Councillors on Wednesday and Thursday.

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