Japan's House of Representatives passed the fiscal 2026 budget proposal on March 14, supported by the ruling Liberal Democratic Party and Japan Innovation Party's majority, sending it to the House of Councillors. The budget totals a record 122.3 trillion yen, drawing criticism from opposition parties over the short deliberation time. The ruling coalition aims for passage by the fiscal year-end despite uncertainties in the upper house.
Japan's House of Representatives passed the fiscal 2026 budget proposal on March 14, 2026, with support from the ruling Liberal Democratic Party (LDP) and Japan Innovation Party, which hold a majority in the lower house. The bill, totaling a record 122.3 trillion yen—an increase of 7.1 trillion yen from the initial fiscal 2025 budget—was approved despite opposition protests and sent to the House of Councillors. This marks the second consecutive year of a record-high general account budget, including a record 9.04 trillion yen for defense-related purposes.
Deliberations lasted just 59 hours over 15 days, the shortest in recent decades, surpassing the 66 hours and 30 minutes for the fiscal 2007 budget under former Prime Minister Shinzo Abe. Budget Committee Chairman Tetsushi Sakamoto of the LDP faced accusations of abusing his authority to expedite proceedings. Four opposition parties, including the Centrist Reform Alliance (CRA), submitted a motion late on March 13 to dismiss him, but it was voted down during the plenary session on March 14.
At the end of the Budget Committee meeting, Prime Minister Sanae Takaichi stated, "I believe I have handled the Diet deliberations with sincerity while seeking cooperation to avoid disrupting the lives of the people." CRA leader Junya Ogawa criticized the ruling coalition at a press conference, saying their forceful management of the Diet is "extraordinary and affects the dignity of the institution."
Substantial deliberations in the upper house Budget Committee are set to begin on Monday, March 17, with Takaichi scheduled to attend basic questioning sessions on Monday and Tuesday. The ruling parties lack a majority in the upper house, making passage uncertain, but their overwhelming lower house control allows override of any rejection. If not passed earlier, the budget will automatically enact on April 11, 30 days after transmission to the upper house.
The draft was submitted about a month later than usual due to the February 8 general election called by Takaichi, in which her coalition secured over three-quarters of the 465 lower house seats. The government plans to issue 29.58 trillion yen in new bonds to cover shortfalls, highlighting Japan's debt reliance amid the worst fiscal health among G7 nations. Recent U.S.-Israeli actions against Iran have raised crude oil prices and weakened the yen, impacting resource-poor Japan.
