Japan Enacts Record ¥115 Trillion FY2025 Budget After Rare Revisions

Japan's National Diet has enacted a record fiscal 2025 budget of 115.20 trillion yen ($770 billion) with support from the ruling Liberal Democratic Party (LDP), Komeito, and the opposition Japan Innovation Party. This marks a significant shift in the political landscape as Prime Minister Shigeru Ishiba's government must now collaborate with opposition parties following a loss of majority in the Lower House during the October 2024 elections. The budget faced revisions, including a halt on increasing medical expense limits, reflecting the need for cooperation amidst the minority rule. The approval came on March 31, just before the new fiscal year, and is notable for being the first budget enacted after upper house revisions under Japan's current Constitution. Ishiba's administration has had to navigate public dissatisfaction and scrutiny, especially after revelations regarding gift vouchers distributed to LDP members. The successful passage of the budget is seen as a crucial win for Ishiba's government as it prepares for upcoming elections.