Diet debate started Tuesday on the fiscal 2001 government budget. The debate is likely to see head-on confrontation between the ruling and opposition forces. The government and the ruling coalition are hoping to pass the budget before fiscal 2000 ends March 31 in order to prepare for an Upper House election in July.

The ruling alliance, led by Prime Minister Yoshiro Mori and made up of the Liberal Democratic Party, New Komeito and the New Conservative Party, faces a volatile political situation. A change of government could occur anytime.

Political uncertainty has grown since early this year over the KSD scandal and the alleged embezzlement of government funds by a Foreign Ministry official.