Japan Lower House Passes Modified FY 2025 Budget Bill

Tokyo, March 4 (Jiji Press)--Japan's House of Representatives passed a modified fiscal 2025 budget bill at a plenary meeting on Tuesday, with support from the ruling Liberal Democratic Party-Komeito coalition, which submitted the modified bill, and Nippon Ishin no Kai (Japan Innovation Party).

It is the first time in 29 years that an initial budget bill submitted by the government has been modified in the Diet. The modified bill calls for general-account spending of 115,197.8 billion yen, down 343.7 billion yen from the original bill, the first such reduction in 70 years.

On Tuesday, the Lower House also passed a revised tax reform bill that includes a plan to raise the minimum taxable income to up to 1.6 million yen.

With the ruling bloc retaining a majority in the House of Councillors, both bills are now set to be enacted during the current ordinary session of the Diet, but it is uncertain whether they will clear the Upper House by the end of this month, or the end of fiscal 2024.

After losing their majority in the Lower House in last autumn's general election, the ruling parties have been negotiating with opposition parties, including Nippon Ishin, to modify the bills.

[Copyright The Jiji Press, Ltd.]