The government said Tuesday it won't be able to deliver on about 40 percent of its budget outlays for the fiscal year starting in April unless the ruling and opposition camps can soon agree to pass related bills in the Diet.
Prime Minister Naoto Kan's Cabinet has submitted a draft general account budget of ¥92.41 trillion for fiscal 2011 to the divided Diet, where the opposition camp controls the Upper House.
Even if the Diet approves the budget itself, the government can't depend on part of the revenues it has included in the plan, including bonds to cover its deficit and surplus funds at government-backed entities, without the enactment of related laws.
The bigger part of the budget, financed by tax and some other revenue sources, isn't under threat because it has been approved by the Lower House, which the ruling coalition dominates.
Under the Constitution, the Lower House holds sway on legislation, even that vetoed by the Upper House. But the failure to pass related legislation could stymie the administration's plan to increase the amount of grants given to regional governments.