ID :
52590
Sat, 03/28/2009 - 07:08
Auther :

FY 2009 budget, related bills pass Diet, Aso to eye extra budget

TOKYO, March 27 Kyodo -
The fiscal 2009 budget, worth a record 88.5 trillion yen, and four related
bills passed the Diet on Friday, clearing the way for Prime Minister Taro Aso
to form an extra budget for the new fiscal year from April 1.
The beleaguered premier is widely expected to order the government as early as
next Tuesday to compile an extra budget for fiscal 2009 to finance fresh
economic measures that are currently under discussion by the ruling bloc of his
Liberal Democratic Party and the New Komeito party.
''I hope (steps secured by) the budget will be implemented at an early stage,''
Aso told reporters in the evening, while denying he is considering drawing up
an extra budget at this point.
Meanwhile, Finance Minister Kaoru Yosano recommended in a press conference that
the additional stimuli include steps to ensure credit flows, boost demand and
build a social safety-net.
Now that Aso can take a respite from intensive Diet deliberations, which gave
him a reason not to call an election, he is also expected to face pressure to
dissolve the House of Representatives for a national poll, some political
analysts say.
On the timing for lower house dissolution, Aso said, ''I'll decide on it after
confirming economic steps have been implemented in a proper way and what
results they've produced,'' indicating he will continue to focus on efforts to
revive the economy for the time being.
But analysts say Democratic Party of Japan President Ichiro Ozawa's recent
decision to stay on as leader of the main opposition party despite a
fundraising scandal may intensify the pressure from LDP lawmakers as his
decision is unlikely to gain much voter support.
A Kyodo News survey released Thursday showed that more than 66 percent of
responding voters say they want Ozawa to resign and nearly 80 percent say they
have not been convinced by Ozawa's accounts of the scandal in which his top
aide was indicted for a violation of the political funds control law.
''LDP lawmakers may move to capitalize on their rival's troubles and have Prime
Minister Aso hold an election in April or May,'' said Tomoaki Iwai, a professor
of politics at Nihon University.
Yoshiaki Kobayashi, a professor at Keio University, also said voters will
continue to give a wary look to the DPJ while Ozawa remains in his post and
that LDP lawmakers may seek a lower house dissolution before the ailing
opposition leader calls it quits.
Since Aso could use the extra budget as another reason for delaying an
election, he is likely to decide on the best time to dissolve the lower house
during budget debate in parliament and by keeping tabs on developments in the
DPJ.
As prime minister, Aso has the authority to dissolve the lower house.
But Aso himself is not clear of all troubles yet, since Cabinet member
Toshihiro Nikai is also implicated in the scandal, said Masaki Taniguchi, an
associate professor at the University of Tokyo.
''After threatening to dissolve the Diet when his foes are in turmoil, Aso
could get back to a weaker position soon if prosecutors move to build a case
against Minister Nikai's side,'' Taniguchi said, referring to Economy, Trade
and Industry Minister Nikai.
Nikai, an LDP lawmaker, is also alleged to have shady relations with Nishimatsu
Construction Co., the general contractor embroiled in the Ozawa scandal.
If Aso puts off a dissolution until after this spring, the next possible timing
is widely anticipated to be August or a date even closer to the Sept. 10
expiration of the term for lower house members, pundits say.
They note that the New Komeito party is against holding a national election
immediately before or the same day as the July 12 gubernatorial election for
Tokyo, a crucial base for the LDP's junior coalition party.
On Friday, the fiscal 2009 budget, which includes 1 trillion yen in special
emergency reserves, was voted down by the opposition-controlled House of
Councillors in its plenary session along with its related bills.
Nonetheless, the budget cleared parliament, as the Constitution states that the
vote by the more powerful lower chamber takes precedence in terms of budgets.
The lower house approved the budget last month.
The ruling bloc also got the four budget related bills passed through a revote
with two-thirds of votes in the lower chamber.
The DPJ-led opposition camp has softened its stance against the ruling bloc
since the scandal involving Ozawa broke, enabling the ruling parties to get
them passed earlier than initially anticipated.
Among the four related bills was one to amend the nation's taxation system,
which includes a supplementary clause laying the groundwork for raising the
consumption tax from the current 5 percent. It also features a record size of
tax cuts for mortgage holders.
==Kyodo

X