Prime Minister Yasuo Fukuda's sudden resignation will not cause a political vacuum, economic ministers claimed Tuesday, but analysts warned that Japan's fiscal discipline may be sacrificed if Taro Aso becomes the next prime minister and tries to spend the government's way out of economic trouble.
"The government and ruling parties have decided to compile a supplementary budget," Finance Minister Bunmei Ibuki told reporters Tuesday morning. "We will compile the supplementary (budget) without delay."
Last week, the government unveiled an ¥11.7 trillion economic stimulus package to be financed by a ¥1.8 trillion supplementary budget. This budget will be submitted to the extraordinary Diet session that will be convened after the next prime minister is chosen. The session had been expected to start Sept. 12, but Fukuda's exit has moved the start date back.