While the Democratic Party of Japan-led government secured the passage of the ¥92.3 trillion fiscal 2010 budget this month, the party still faces a fiscal dilemma given its election pledge to realize ¥16.8 trillion worth of policy measures at a time when social security costs are ballooning.

Analysts are concerned how the DPJ will address the potential crisis, especially with attention focused on the economic debacle overwhelming Greece recently.

It will be difficult for the debt-ridden government to keep drafting massive budgets without drastically cutting extra spending, achieving economic growth or raising the consumption tax — all daunting, if not impossible, or politically suicidal, challenges for the DPJ, analysts say.