The legislation passed Tuesday by the Lower House authorizing the sale of bonds to finance the budget will probably be blocked by the Upper House, complicating Prime Minister Yoshihiko Noda's economic policy.
The bill authorizes the sale of ¥38.3 trillion in so-called deficit-financing bonds to pay for about 40 percent of budget spending for the year that began April 1. The Liberal Democratic Party is preparing a censure motion against Noda, and its leader, Sadakazu Tanigaki, signaled last week his party won't approve the bill unless Noda calls new elections.
Finance Minister Jun Azumi said last month the government will run out of money in October should the bill fail to pass.