Japan PM Secures Opposition Backing for Economic Stimulus Package

TOKYO – Japanese Prime Minister Shigeru Ishiba’s minority government has gained crucial support from an opposition party to push through an economic stimulus package aimed at tackling rising public discontent over inflation.

On November 20, Yuichiro Tamaki, the leader of the Democratic Party for the People (DPP), confirmed his party’s agreement to back the Liberal Democratic Party (LDP) and its coalition partner Komeito in passing the measures. The stimulus package, which could be approved by the Cabinet on November 22, is designed to alleviate public frustration that contributed to the LDP’s worst election result in 15 years last month.

“The new comprehensive economic stimulus measures include many items that relate to taxation reforms and the next government budget,” Tamaki announced on social media, crediting voters for driving progress on long-standing issues.

In return for its support, the DPP secured a commitment to raise the threshold for tax-free annual income above the 1.03 million yen (S$8,882) limit that has remained unchanged for three decades. The change is expected to encourage part-time workers to extend their hours, addressing labour shortages while boosting consumer spending.

LDP policy chief Itsunori Onodera emphasized the importance of collaboration with the opposition, stating, “With the ruling coalition falling short of a majority, we will need to listen carefully to what the opposition has to say and cooperate with them.”

Ishiba’s leadership has been under scrutiny since taking office on October 1, following a snap election intended to solidify his position. The LDP faced voter backlash due to inflation and a slush fund scandal involving former Prime Minister Fumio Kishida. Ishiba’s approval rating now stands at 46%, a five-point drop since his Cabinet’s formation.

While the DPP’s backing offers Ishiba a lifeline, challenges persist, including public perception. Recent missteps, such as being photographed napping in Parliament and missing a global leaders’ photo at a Peru summit due to traffic, have drawn criticism on social media, highlighting the delicate balance he must maintain as he navigates his administration’s early days.