Extraordinary Diet Session Opens: Opposition Parties Must Not Forget Their Fiscal Responsibility

Editorial

14:00 JST, August 2, 2025

During the recent House of Councillors election campaign, measures to combat rising prices were the focus of debate. But strengthening the nation’s defense capabilities and reforming the social security system are also urgent issues that have to be dealt with.

In spite of this, it is difficult to believe that the government is serious about tackling these difficult issues, as the extraordinary Diet session is set to last for only five days.

The first extraordinary session of the Diet following the upper house election opened with the speaker and vice speaker of the upper house being chosen, among other business. Next week, the Budget Committees of both houses will convene to discuss U.S. tariff measures.

The ruling parties, which suffered a crushing defeat in the upper house election, are facing this Diet session as a minority in both houses. Cooperation from opposition parties is essential to resolve the mounting challenges. For the government and the ruling parties, the latest Diet session is also an important opportunity to determine which opposition party can be their partner.

However, the ruling Liberal Democratic Party is in turmoil over the future of Prime Minister Shigeru Ishiba, and the LDP is in no position to look for a partner.

Meanwhile, opposition parties are insisting on the tax cuts they promised in the upper house election.

Seven opposition parties, including the Constitutional Democratic Party of Japan, the Japan Innovation Party and the Democratic Party for the People, have jointly submitted lawmaker-initiated legislation to the House of Representatives to abolish the provisional gasoline tax rate.

If the provisional tax rate is removed, tax revenue will decrease by ¥1 trillion per year. The bill does not mention at all how this shortfall would be covered.

The opposition parties’ attitude of focusing only on currying favor with the public and leaving the matter of securing fiscal resources to the government can only be described as irresponsible.

Now that they have gained the power to influence the political situation after driving the ruling parties out of a majority in both houses of the Diet, they should propose policies with a solid financial basis.

Regarding the abolition of the provisional tax rate, the ruling parties agreed with the opposition parties at a meeting of the Diet affairs chairpersons to achieve this by the end of the year. Do the ruling parties intend to continue to respond to the opposition side’s demands on such matters as increased spending and tax cuts by agreeing to them every time?

Opposition parties are also aiming to reduce the consumption tax rate or abolish the tax entirely. If the consumption tax rate on foodstuffs is lowered to 0%, it would result in a decline in tax revenue of ¥5 trillion per year.

If this continues, the fiscal situation will only worsen. In order to create a stable political system, the only option is to invite some opposition parties to join the government and form a new coalition. To do so, the prime minister must step down and create an environment in which the opposition parties can cooperate.

The opposition parties are currently leaning toward putting off the submission of a no-confidence motion against the Ishiba Cabinet during the current Diet session. CDPJ leader Yoshihiko Noda said at a press conference, “We can wait until autumn to take a confrontational stance,” suggesting the possibility of submitting the motion during the next Diet session.

If the prime minister, who has lost public trust, emphasizes his intention to remain in office, it is clear that the situation will reach a deadlock.

(From The Yomiuri Shimbun, Aug. 2, 2025)