If the Democratic Party of Japan-led government fails to gain passage of a special bill to issue deficit-covering Japanese government bonds, suspicions that the country is unable to ward off a looming fiscal crisis will only deepen, two economists interviewed by The Japan Times warn.
The ruling bloc desperately needs to pass the bill in order to issue special deficit-covering JGBs to finance ¥40.7 trillion of the ¥92.4 trillion budget for the fiscal 2011 budget, but it lacks the votes and needs, yet is failing to get, support from an ever-confrontational opposition camp.
If the bill fails to clear the Diet by the March 31 end of fiscal 2010, the government will be unable to finance the fiscal 2011 budget and instead will run out of funds most likely around June.