Japan PM Sanae Takaichi could name early election, coalition companion says | USAEMALL.com

COMPLICATING SPENDING PLANS?

But Tetsuo Saito, head of the opposition Komeito, said a February election “would make it impossible to pass the budget by the fiscal year-end, at a time Japan’s economy faces a critical phase,” telling NHK he was surprised by the reports that Takaichi was considering dissolving parliament when it convenes on Jan 23.

Takaichi’s US$783 billion spending proposal, her first budget as prime minister, includes her flagship spending programme. The yen fell against the dollar on Friday after the Yomiuri report on her election plans.

Japan’s economy has weathered the hit from higher US tariffs, but stubborn food inflation has weighed on consumption.

If Takaichi cannot enact the budget by the end of March, her government would have to compile a stop-gap budget, which could delay execution of spending measures.

Japan’s Internal Affairs Ministry issued a statement on Saturday urging regional election committees to start preparing in case of an early election. While the ministry said it was just responding to media reports, political analyst Shigenobu Tamura said the statement meant the election was a “done deal”.

Yoshihiko Noda, a former prime minister and head of the largest opposition group, the Constitutional Democratic Party of Japan, said he had expected Takaichi to pass the budget before calling an election but now felt she would dissolve parliament on Jan 23.

ECONOMIC RISK FROM CHINA DISPUTE

Another economic risk for Japan is its trade tension with China, which could deal a blow to its export-reliant economy if Beijing imposes curbs on vital rare earths.

Takaichi touched off the dispute in November by saying a Chinese attack on democratically governed Taiwan could be deemed an existential threat to Japan, which could trigger a military response from Tokyo. China regards Taiwan as part of its territory, a claim the island’s government rejects.

Since then, China has urged its citizens not to travel to Japan, cancelled meetings and events, and banned exports of dual-use items for Japan’s military, among other measures.