1.8 tril. yen extra budget passes lower house, enactment likely

TOKYO, Oct. 8 Kyodo - A 1.81 trillion yen supplementary budget aimed at supporting businesses and livelihoods cleared the House of Representatives on Wednesday, marking progress for Prime Minister Taro Aso who is making its enactment his top priority before calling a general election amid growing concerns over Japan's economy.

With the main opposition Democratic Party of Japan also voting in favor, the
government-proposed extra budget for the current fiscal year through next March
is likely to pass the opposition-controlled House of Councillors as early as
Oct. 16 for enactment.
The extra budget is part of an 11.7 trillion yen emergency policy package,
unveiled at the end of August and designed to alleviate the negative impact on
the Japanese economy from spikes in energy and raw material prices.
By approving the extra budget, the DPJ intends to step up pressure on Aso to
call the election, which is already delayed from the initial timing considered
by the ruling parties, amid uncertainty over the economy in the wake of the
U.S.-triggered financial turmoil.
The DPJ also plans to allow a government-submitted bill to extend Japan's
refueling mission in the Indian Ocean to pass the lower house by the end of the
week, although the party is likely to vote against it, according to DPJ
lawmakers.
The bill will extend the temporary law currently authorizing the mission in
support of U.S.-led antiterrorism operations in and near Afghanistan for one
year until January 2010.
If the upper house rejects the bill following lower house approval, the ruling
coalition of the Liberal Democratic Party and the New Komeito party can use its
overwhelming two-thirds majority in the more powerful lower house to seek
passage of the bill by holding an overriding second vote in the chamber in line
with constitutional provisions.
Aso also suggested Tuesday that he would like to call the election after seeing
the development of the Diet deliberations on the refueling mission bill.
The extra budget passed the lower house in a plenary session in the afternoon,
after clearing its Budget Committee with a majority vote by the ruling parties
and the DPJ.
Before the budget committee's approval, Aso called Wednesday's plunge in Tokyo
stocks ''not normal'' and said that it signals concerns over the future course
of the economy.
On the timing of the lower house dissolution, Aso reiterated that he will put
his priority on economic stimulus measures, rather than calling the election.
The extra budget includes 351.8 billion yen for projects intended to ease
people's concerns, such as lessening senior citizens' medical cost burdens, and
729.6 billion yen for disaster prevention measures.
It also includes 188.1 billion yen to promote a low-carbon society and enhance
the competitiveness of domestic farm and fishery industries, 446.9 billion yen
to support small businesses and 91.6 billion yen to aid local governments.
Despite recent falls in crude oil prices in global markets, some Japanese
companies still face severe business conditions as they have not fully passed
on past surges in raw material import prices to consumers.
With the lower house's current term set to expire in September next year, Aso,
who took office on Sept. 24 after unpopular Yasuo Fukuda resigned, is
apparently looking for a time to call the election that would favor the ruling
parties.
==Kyodo