LDP
Japan approves 8.56 trillion yen stopgap budget for fiscal 2026 amid upper house delays
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The Japanese government approved an 8.56 trillion yen stopgap budget on March 27 to fund operations for the first 11 days of fiscal 2026 starting April 1, due to stalled upper house deliberations on the main 122.31 trillion yen budget passed by the lower house earlier this month. This is the first such provisional measure in 11 years, backed by ruling and main opposition parties, and expected to pass parliament on March 30.
Former members of the Liberal Democratic Party's recently disbanded factions have begun informal meetings following the party's landslide victory in the February 8, 2026, Lower House election, raising prospects of a faction comeback amid ongoing internal shifts under Prime Minister Sanae Takaichi.
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A nonpartisan panel discussing a temporary lift on the consumption tax for groceries began on Thursday without two major opposition parties. Prime Minister Sanae Takaichi had hoped to use it to build cross-party consensus on suspending the tax for two years. However, the Centrist Reform Alliance and the Democratic Party for the People decided at the last minute not to attend.
In the ongoing campaign for Japan's 2026 Lower House election, Prime Minister Sanae Takaichi has avoided discussing a proposed consumption tax cut and her alleged ties to the Unification Church. Opposition parties are intensifying their criticism, using her silence as a key attack point. As president of the ruling Liberal Democratic Party, Takaichi shows no signs of addressing these issues in the final stretch of the campaign.
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A Yomiuri Shimbun survey shows that 74% of Liberal Democratic Party candidates for the House of Representatives election support a limited reduction in the consumption tax rate, while 20% prefer maintaining the current rate, indicating caution within the party ahead of Sunday's vote.
When Sanae Takaichi was elected Liberal Democratic Party president and prime minister, expectations were high that she would reclaim conservative votes lost under her more liberal predecessor. However, as the upcoming Lower House election approaches, it is increasingly uncertain whether those votes will return to the LDP. Despite Takaichi's high personal approval ratings, they have not boosted the party's support as hoped, with aggressive campaigns by smaller conservative parties potentially splitting the vote.
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The Constitutional Democratic Party of Japan (CDP) and Komeito have formed a new party called the Centrist Reform Alliance (CRA), with CDP leader Yoshihiko Noda likely to be its prime minister candidate. The move has raised alarms in the ruling Liberal Democratic Party (LDP), as it loses a key election ally ahead of an anticipated lower house election.
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