Politics & Government

Japan Govt Starts Deliberations on FY25 Supplementary Budget Plan

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

The Yomiuri Shimbun

17:24 JST, December 8, 2025

The government on Monday morning submitted a supplementary budget proposal for fiscal 2025 to the Diet, indicating financial resources to back a new comprehensive economic package.

Deliberations on the budget plan started in the afternoon at plenary sessions of both houses of the Diet with a speech by Finance Minister Satsuki Katayama about fiscal policies and interpellations by party representatives.

The government and ruling parties aim to pass the bill during the current Diet session, which ends on Dec. 17.

Of the total ¥18.303 trillion general account — the largest since the end of the COVID-19 pandemic — ¥8.904 trillion will be used for key measures to counter high prices. The government will also allocate ¥6.433 trillion for crisis management and growth investments and ¥1.656 trillion for measures to strengthen defense and diplomatic capabilities. To prepare for natural disasters and manage increasing damages due to bear attacks, ¥709.8 billion will also be earmarked as reserve funds.

Regarding rising prices, the proposal calls for subsidies of about ¥7,000 per household for electricity and gas bills from January to March next year. A one-time payment of ¥20,000 per child aged up to 18 who is eligible for the child allowance is also included.

More than 60% of expenditures in the budget, or ¥11.696 trillion, will be covered by issuing additional government bonds.

The Liberal Democratic Party and its ruling coalition partner, the Japan Innovation Party, hold a majority in the House of Representatives, enabling them to pass the budget bill without the support of other parties. However, the support is requisite for the early passage of the bill in the House of Councillors where the ruling parties form a minority.

Arguing that support for middle-income earners is insufficient, the Constitutional Democratic Party of Japan is considering jointly submitting a motion with Komeito to request revisions to the supplementary budget proposal.