Japan’s opposition Democratic Party for the People (DPP) is expected to support the government’s ¥18.3 trillion ($117 billion) supplementary budget for fiscal 2025, clearing the path for the approval of a major economic stimulus package during the ongoing extraordinary Diet session, set to conclude on Dec. 17.
The ruling coalition, led by the Liberal Democratic Party and supported by Nippon Ishin, holds a majority in the Lower House but lacks sufficient votes in the Upper House. Support from the DPP would secure the bill’s passage, a key priority for Prime Minister Sanae Takaichi’s administration.
According to party sources, DPP lawmakers discussed the proposal in an internal meeting on Dec. 9, where members generally expressed approval. They agreed to leave the final decision to party leader Yuichiro Tamaki and policy chief Makoto Hamaguchi, with no objections raised. Tamaki, who will question the prime minister during the Budget Committee meeting on Dec. 10, is expected to base his final judgment on the government’s responses.
The supplementary budget forms the backbone of the government’s latest economic measures, including ¥17.7 trillion in general account spending — the largest since the COVID-19 pandemic. Tamaki said the draft reflects several DPP-backed policies, such as scrapping the gasoline tax surcharge and updating accounting methods for compulsory automobile liability insurance. Rejecting the proposal, he noted, would contradict the party’s long-standing demands.
Looking ahead, the DPP aims to push for higher income tax thresholds as part of the fiscal 2026 tax reform discussions.