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Politics

Japan's fiscal hawks lay low despite record budget blowout

Once a major presence in the ruling LDP, deficit fighters are silenced in pandemic

Prime Minister Yoshihide Suga's budget policy meets no objections from the ruling Liberal Democratic Party.   © Kyodo

TOKYO -- As Japan readies a record 106 trillion yen ($1.02 trillion) budget for fiscal 2021, the ruling party's fiscal conservatives have fallen silent, choosing not to block pandemic relief that could deliver a win for the party in a general election next year.

Prime Minister Yoshihide Suga's government and the ruling Liberal Democratic Party agree that generous spending is needed to support an economy pummeled by the pandemic. But now the country's long-term goal of fiscal consolidation appears to be under threat. 

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