Japan's ruling coalition and a small opposition party have reached an agreement among their policy chiefs, sorting out their differences on free high school education and social security reforms, in a move that would ensure parliamentary approval of a state budget.
The working-level agreement comes after Prime Minister Shigeru Ishiba's Liberal Democratic Party and its coalition partner, Komeito party, took heed of demands from the Japan Innovation Party. The opposition party has demanded expanding financial support for households with high schoolers regardless of their incomes and cutting medical costs by 4 trillion yen ($27 billion) yearly.
Capping days of negotiations, a draft agreement states the three parties will ensure that a revised state budget for the next fiscal year will be enacted before it begins in April, a development that will come as a relief to Ishiba, now head of a minority government.
The agreement is expected to be finalized when their leaders meet as early as next week, according to lawmakers.
For the Japan Innovation Party, securing concessions from the LDP-Komeito camp has been a prerequisite for it to support the government's budget plan for fiscal 2025. The spending plan comes as Japan households continue to be hit by rising prices for everyday goods.
Under the current program, a household with an annual income of less than 9.1 million yen with a child who goes to a public high school can receive 118,800 yen a year, effectively ensuring tuition-free education.
According to the draft agreement, the three parties will remove that income threshold in fiscal 2025 and aim to provide 118,800 yen a year. It will apply to both public and private high school students.
As demanded by the Japan Innovation Party, a household with a child who goes to a private high school will receive 457,000 yen a year from fiscal 2026 -- the average private high school tuition -- up from the current 396,000 yen, the draft agreement said.
The ruling parties also accepted the small opposition party's call for curbing medical spending by an annual 4 trillion yen, saying in the draft document that they will make efforts with the number "in mind."
In addition, the three parties will provide free school lunches in fiscal 2026 for elementary school students.
The opposition party has a bigger presence in parliament after last year's general election stripped the ruling coalition of their majority control of the powerful House of Representatives.
The LDP and Komeito have also been in talks with the Democratic Party for the People over raising the income threshold for tax payments, as the opposition wants to boost people's incomes.
Ishiba has taken a positive stance on policy coordination with opposition parties since the start of a 150-day regular Diet session in January, though he risks being perceived as too conciliatory by ruling party members and supporters.
The major opposition Constitutional Democratic Party of Japan has also been ramping up pressure on Ishiba to revise the draft budget plan, which is already at a record 115.54 trillion yen.
It is calling for changes worth nearly 3.8 trillion yen to reduce education-related expenses for households and end a gasoline surcharge amid persisting inflation.
CDPJ chief Yoshihiko Noda expressed his frustration on Friday over a lack of progress on negotiations with the ruling coalition, which has been devoted to finding common ground with the other two opposition parties.
"Don't underestimate us," Noda told reporters.
The draft state budget plan must clear the lower house by March 2 for it to be enacted before fiscal 2025 begins.
© KYODO
No Comment
Login to comment