A Lower House ad hoc committee passed a top fiscal reform bill Wednesday that would set a target for deficit reduction and place a ceiling on key budget items.
The bill is regarded by the government as the most important piece of legislation in the current extraordinary session of the Diet, due to end Dec. 12. It won a majority endorsement from both the ruling Liberal Democratic Party and the Social Democratic Party. New Party Sakigake, the LDP's other small ally, has no representation on the committee.
Under the bill, the government would be obliged to cut its fiscal deficit to 3 percent or less of gross domestic product by fiscal 2003 and terminate the issue of deficit-covering bonds by that year. It is expected to get the full approval of the Lower House during a plenary session today. It will then go immediately to the Upper House for further action.