On the afternoon of March 4, after the final meeting of the Japanese House of Representatives Budget Committee with the participation of Prime Minister Ishiba Shigeru, this legislative body voted and passed the draft fiscal 2025 budget with a majority of support.
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| Japan's lower house of parliament approved the fiscal 2025 budget on March 4. (Source: Jiji press) |
According to Kyodo news agency, the total budget for fiscal 2025 was approved at a record high of about 115,197.8 billion yen ($770 billion). This figure was revised down by 3,437 billion yen ($23 billion) from the cabinet's initial proposal at the request of opposition parties.
This is the first time in 29 years since fiscal 1996 under Prime Minister Hashimoto Ryutaro that an initial budget draft has been revised in the Diet. It is also the first time in 70 years since the time of Prime Minister Hatoyama Ichiro (1955) that Japan has revised its budget downward.
Regarding the source of funds to secure the new fiscal budget, the Japanese government decided not to issue additional bonds. Because it does not have a majority in the House of Representatives, the ruling coalition had to negotiate with the Japan Reform Party and the Democratic Party for the People to seek support for the draft budget.
The ruling coalition failed to find common ground with the Democratic Party for the People on the ceiling for personal income tax exemptions, but reached an agreement on free high school tuition and social security reform with the Japan Reform Party.
Earlier, on March 3, the three parties' secretaries signed a document pledging to quickly push through the budget and tax reform bill. This is the first time the Japan Reform Party has supported a government budget draft.
Regarding free high school tuition, in fiscal 2025, the Japanese government will remove the income limit on tuition subsidies (currently 118,800 yen/year) for all public and private students. Support for building facilities for public vocational schools will also be expanded.
The main opposition party, the Constitutional Democratic Party (CDPJ), has strongly opposed the budget, demanding that the cap on health insurance payments for expensive treatments be stopped. Prime Minister Ishiba said that a review of the policy after August 2026 could be considered, but that the August 2025 cap increase would continue as planned.
The government and the ruling coalition initially aimed to pass the budget in the House of Representatives by March 2 to ensure the fiscal 2025 budget would take natural effect in fiscal 2024, but that schedule has been postponed.
The Senate debate will be accelerated to ensure the budget is passed before the end of March.
Source: https://baoquocte.vn/ha-vien-nhat-ban-thong-qua-ngan-sach-tai-khoa-2025-cao-ky-luc-306333.html
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