A second supplementary budget for fiscal 2008, which includes the controversial ¥2 trillion in cash handouts to all households, was enacted on Tuesday. The enactment process has highlighted a futile confrontation between the ruling and opposition camps. Both camps must be flexible since the nation badly needs consensual budgetary measures to deal with the worsening economic crisis.
The extra budget had passed the Lower House on Jan. 13 with the support of the ruling parties. On Monday the Upper House, controlled by the opposition parties, passed a budget revision bill removing the cash handout plan, but the ruling parties rejected that bill in the Lower House.
As a result, the two houses set up a joint committee in accordance with constitutional provisions. Because the committee failed to reach a consensus, the extra budget was eventually enacted in line with constitutional provisions.