As battles rage in the Diet between the ruling and opposition camps over fiscal 2011 budget-related bills, one dreadful scenario has emerged: The debt-ridden government may run out of funds by around June.
On top of this, various public perks would lapse because they are based on temporary legislation that the ruling bloc is desperately trying to renew.
If the opposition-controlled Upper House vetoes the budget related-bills, the ruling Democratic Party of Japan would not be allowed to issue deficit-covering special Japanese government bonds. Those special bonds would be needed to finance as much as ¥40.7 trillion of the ¥92.4 trillion budget for the fiscal year starting in April.