The Japanese Budget Committee will begin discussions on the government's budget proposal, focusing on issues like zero consumption tax on food and security measures.
On the 27th, the Budget Committee of the House of Representatives will convene for the first time since the special national assembly following the House dissolution and general election. Delayed due to this political disruption, the government will present its initial budget proposal for discussion. Notably, the ruling Liberal Democratic Party (LDP) and the Center Reform Alliance plan to address key topics such as the concept of zero consumption tax on food products and the framework for benefit tax credits, directly questioning Prime Minister Sanae Takaichi.
An initial meeting of the cross-party 'National Conference on Social Security' took place on the 26th, although participation from the Center and the Democratic Party was absent, with only the opposition Team Future attending. The government remains open to participation from other parties, with the Center likely to challenge the Prime Minister on the nature and progress of the discussion in the conference. Aside from tax issues, debates are expected over the cabinet's push for 'responsible proactive fiscal policy,' substantial strengthening of security policy, and enhancements in intelligence gathering and analysis functions.
The questioning on the 27th will include prominent figures from the LDP and the Center Reform Alliance. Among the notable inquiries will be from Defense Minister Shinjiro Koizumi concerning China's recent export restrictions on dual-use products impacting defense-related companies, positioning Japan’s defense strength against international dependencies. Koizumi emphasized the urgent need to strengthen Japan's defense supply chains and stated that a 'China-free' approach, seen in U.S. drone companies avoiding Chinese components, could serve as a reference point for Japan's supply chain stability.
