Japanese Prime Minister Sanae Takaichi's administration has abandoned plans to enact the fiscal 2026 budget in time for the April start of the next fiscal year, opting instead for a stopgap spending measure, according to senior government officials [1]. The provisional budget is expected to cover the first 11 days of the next fiscal year and total around 8 trillion yen ($50 billion), with cabinet approval anticipated on Friday [1].
The ruling bloc, leveraging its supermajority following the February 8 general election, pushed a draft initial budget worth 122.31 trillion yen through the House of Representatives on March 13 [1]. However, in the House of Councillors, the coalition led by Takaichi's Liberal Democratic Party is in the minority, complicating deliberations and making it difficult to reach an agreement [1]. The Japanese Constitution stipulates that a budget is automatically enacted 30 days after passage by the lower house if the two chambers fail to agree, but the current deliberation schedule in the upper house has forced the administration to shelve enactment within this month [1].
The Diet deliberation period for the initial budget has been shorter than usual due to the lower house election called by Takaichi, despite her aim to have the budget enacted by next Tuesday, the final day of the current fiscal year [1]. This marks Japan's first use of a stopgap budget since 2015 [1].
CONCLUSION
Japan's government will implement a stopgap budget for the first time since 2015, reflecting political challenges in the upper house and a shortened deliberation period. The move introduces temporary fiscal uncertainty, but the provisional measure is expected to ensure continuity in government spending until the full budget is enacted.