Prime Minister Shigeru Ishiba has been facing harsh criticism from his own Liberal Democratic Party, the opposition and the public following revelations that he handed out gift vouchers worth ¥100,000 ($668) each to 15 rookie LDP lawmakers earlier this month.

The timing of the reports — which initially appeared in the Asahi Shimbun — could not have been worse.

Ishiba had just apologized in parliament for his fumble over reversing a hike in medical copayment caps — a policy shift that now requires an unprecedented second revision of the fiscal 2025 budget that the prime minister had hoped to pass by March 2 in the Lower House.

Here’s a look at how Ishiba’s political standing has dramatically worsened over the last week.

What is Ishiba’s gift voucher blunder about?

On March 3, prior to an evening gathering with the prime minister and other senior government officials, Ishiba’s staff handed out gift vouchers to 15 rookie lawmakers elected in last October’s Lower House election.

Asahi's report, which came out on March 13, hinted that Ishiba’s actions may have violated the political funds control law, which bans donations to politicians and people running for public office, with exceptions made only for campaign activities ahead of elections.

Ishiba later told reporters that he had bought the vouchers using his own money to reward the lawmakers and their families for their efforts during the election and defended his actions as being legal.

The gift vouchers are not the same as donations for political activities, Ishiba argued, and therefore are not in breach of the political funds control law. He added that since none of the lawmakers are part of his Tottori home constituency, the gifts do not go against the law on the election of public officials, which prohibits politicians and representatives from making donations or sending gifts to their constituents.

Ishiba also said he has given out gift vouchers about 10 times since becoming prime minister. Ishiba has been under fire for his actions since last week, with opposition parties openly calling for his resignation.

Was this unusual?

Some lawmakers publicly said it was customary for prime ministers to hand out gift vouchers to newly elected lawmakers as a reward.

Shoji Maitachi, an Upper House lawmaker hailing from Tottori who supported Ishiba’s leadership bid last year, told reporters on Sunday that it was “a tradition regularly practiced by past prime ministers.”

Maitachi’s remarks, which he later withdrew, came after digital minister Masaaki Taira told reporters on Friday that the practice was already in place in the LDP and its factions when he first entered the Lower House in 2005.

Other lawmakers had different views.

Speaking on condition of anonymity, a second-term Lower House lawmaker told The Japan Times that he didn’t receive gift vouchers from then-Prime Minister Fumio Kishida after he won a seat for the first time in the 2021 general election.

However, the lawmaker said he had heard about prime ministers handing out money or gifts during the LDP’s presidential elections in the past — something of an open secret within the party.

In a Lower House political reform committee, Kenji Eda, a Lower House lawmaker from the main opposition Constitutional Democratic Party of Japan, revealed that the practice was not in place when he was the policy adviser under the administration of former Prime Minister Ryutaro Hashimoto (1996-1998).

Norihiko Narita, an honorary professor at Surugadai University who served as policy adviser under the administration of former Prime Minister Morihiro Hosokawa, also said the practice was not customary. Hosokawa led a short-lived non-LDP government for approximately nine months between 1993 and 1994.

Why the harsh reaction?

Ishiba’s lavish spending on gift vouchers for lawmakers in the LDP did not sit well with the public.

Considering how the LDP lost its majority in the Lower House last October due to its slush fund scandal tanking public trust, it was careless of Ishiba to use money in a way that would attract even the slightest of criticism, political commentator Atsuo Ito told The Japan Times.

To make matters worse, Ishiba downplayed the gravity of his actions during his hastily convened news conference after the reports surfaced, Ito said.

“Ishiba’s response was too clumsy. He straight up argued his actions weren't illegal. He asked the reporter, ‘What law are you talking about?’ It looked like he was talking back in a sense,” Ito said. “That drew even more criticism.”

Approval rates for the Ishiba Cabinet hit record lows over the weekend, according to multiple polls. With price hikes putting a strain on citizens, it's no surprise that public support for Ishiba declined after reports of his spending on expensive gift vouchers surfaced.

Can Ishiba survive this?

Ishiba is likely to stay put until the Upper House election this summer for two reasons, Ito said.

First, replacing the LDP’s head again would only make the party appear more unstable to voters, who have already denied it a majority in the last election.

Second, refreshing the party's image with a new leader would be difficult as there isn't a single member who stands out as a viable replacement.

“The LDP doesn’t have anybody who would make an attractive cover face. So changing (the president) now would have a negative effect,” Ito said.

That may be why only a handful of LDP lawmakers have openly called for Ishiba’s resignation.

Even the LDP’s junior coalition partner Komeito has refrained from criticizing Ishiba too harshly. Komeito Secretary-General Makoto Nishida told reporters on Tuesday that Ishiba’s actions were “deplorable” but only demanded that he “carefully explains himself until the public is satisfied.”