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Gov't mulls not submitting extra budget in extraordinary Diet session.

TOKYO, Oct. 11 Kyodo

The government of Prime Minister Yoshihiko Noda is considering deferring a plan to submit a supplementary budget for the current fiscal year during an extraordinary parliamentary session expected to be convened in fall, several political sources said Wednesday.

The government is leaning toward placing priority on securing passage of a bill to allow it to finance the regular budget for fiscal 2012 through deficit-covering bonds, the sources said. The Finance Ministry has warned Japan will run out of funds for administrative services at the end of November unless the legislation is enacted.

The discussions on postponing the supplementary budget for the year through March come as the main opposition Liberal Democratic Party and its ally the New Komeito party are urging Noda to dissolve the House of Representatives for a general election soon, making the government reluctant to convene an extraordinary Diet session.

A senior government official said there are no specific measures that the government has to implement through a supplementary budget.

Another government source said, "Even if an extra budget is compiled, it would be difficult to start discussions on it if the LDP and New Komeito are opposed."

Late last month, Noda, who heads the ruling Democratic Party of Japan, expressed his readiness to compile a supplementary budget for the current fiscal year to prop up the economy, which has recently showed signs of stalling.

The government could face criticism as postponing the extra budget could have a negative effect on the economy.

Finance Minister Koriki Jojima said at a press conference a day after assuming his post on Oct. 1 that it is too early to judge whether a supplementary budget is required to stimulate the country's economy.
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Publication:Japan Policy & Politics
Date:Oct 15, 2012
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