Four months after the devastating earthquake and tsunami in the northeast, the economy shows some signs of recovery, but at the same time uncertainty is growing over public finances as the government struggles to implement budgets and push through fiscal reforms amid political turmoil.
Firing a rare warning shot, Finance Minister Yoshihiko Noda said last week the government may run out of money as early as October unless the Diet allows it to issue financing bonds by passing a bill that has been blocked by opposition parties, which control the Upper House.
Without the passage of the bill, the government would be unable to execute some 40 percent of its ¥92.41 trillion initial budget for fiscal 2011 and could possibly lead to shutdowns or reductions in public services.