This Week’s “Nagata-cho” (4-11.Feb, 2014)

 Last week on February 6, 5.46 trillion yen of the supplementary
budget for this fiscal year was approved in the Upper House with
support of the ruling parties and New Renaissance Party. The other
opposition parties voted against the budget for inadequate measures on
possible negative impacts of the consumption tax hike scheduled in
April especially toward mid- and small-sized enterprises (SMEs)
entailed in the budget. At the same time, the Upper House also passed
into legislation other bills related with the budget with regard to
local government subsidies and Japan Science and Technology Agency.

*The state of deliberations in both Houses and committees are
 available from the following websites.can be seen.
 House of Representatives　Internet TV：http://www.shugiintv.go.jp/en/index.php
 Live broadcasts and video recordings of the deliberations in the
 House of Councillors (Japanese only)：http://www.webtv.sangiin.go.jp/

 The supplementary budget, giving financial backgrounds to economic
measures to alleviate negative economic impacts of the consumption
tax-hike from April 2014, entailed (1) measures to enhance
competitiveness of infrastructure development and support for SMEs in
eye of the 2020 Tokyo Olympic Games (1.39 trillion yen), (2) safety
measures and disaster management such as disaster-resilient school
building (1.19 trillion yen), (3) transfer to the special account for
reconstruction after Great East Japan Earthquake (1.93 trillion yen),
and measures toward low-income or child-rearing brochures (0.64
trillion yen), etc.
 Sources said that Prime Minister Abe directed all the ministers to
implement the supplementary budget steadily and swiftly in a Cabinet
meeting on February 7.

 According to passage of the supplementary budget, the lawmakers
entered discussions on the initial budget FY 2014 in the Lower House
Budget Committee on February 10. Interpellation sessions will be held
on February 12-13. The government and ruling parties will make efforts
to pass the budget through the Lower House by February 28, a date by
which the budget will be smoothly preceded within the fiscal year,
because the budget will be automatically passed into legislation in
the Upper House 30 days after being sent to the House for
Constitutional provisions. Yet, as deliberation and voting on the
supplementary budget spent a little time, the remaining time for the
initial budget is shorter than every year and schedule is already
rather tight.
 On the other hand, the opposition parties seek to prevent passage of
the budget within the fiscal year by extending the schedule, having an
eye on a joint struggle. Still, the ruling camp dominates majority in
both Houses of the Diet anyways so it is not likely that intension of
the oppositions will be met successfully.

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