The Lower House on Friday approved a record-high ¥102.66 trillion general budget for the upcoming fiscal year, marking a major milestone in the Diet session for Prime Minister Shinzo Abe's administration as it scrambles to respond to COVID-19 outbreaks and a series of scandals.
The fiscal 2020 budget for the year starting April was cleared with a majority, including members of the ruling Liberal Democratic Party and coalition partner Komeito, voting in favor. The budget follows a recent trend of annual increases — record highs were marked in the last eight years — and tops ¥100 trillion for the second year in a row, darkening prospects for achieving fiscal reform.
Members of opposition parties had previously requested that the budget be rearranged to add funding for COVID-19 countermeasures, but the ruling party did not accept the suggestion. The biggest portion of the spending, about ¥35 trillion, was earmarked for social welfare, incorporating costs for free preschool education and tuition assistance for secondary education. To offset the economic impacts from October's consumption tax hike, the budget allocates ¥1.78 trillion for stimulus programs such as reward point programs linked to cashless purchases.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.