The government is unlikely to pass its fiscal 2026 draft budget by March 31, the end of the fiscal year, senior Finance Ministry officials have said, after Prime Minister Sanae Takaichi announced her decision to dissolve the Lower House this week for a snap election.
Following Friday¡¯s scheduled dissolution of parliament¡¯s all-important lower chamber, which comes on the opening day of this year¡¯s ordinary Diet session, the government is set to compile a stopgap budget for the first time in about a decade to cover essential spending until the full budget for the year from April is enacted.
It remains unclear, however, if the flagship measures of the ruling coalition, led by Takaichi¡¯s Liberal Democratic Party, can be implemented on schedule.
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