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*2nd extra budget passes lower house despite opposition protest*

*TOKYO*, Jan. 13 KYODO

     A second supplementary budget for fiscal 2008 aimed at reinvigorating
the economy cleared the House of Representatives with majority support from
the ruling parties Tuesday despite the opposition bloc's protests over an
unpopular cash handout plan included in the budget proposal.
     The 4.79 trillion yen extra budget for the 12-month period through
March and related bills passed the lower house's plenary session with the
backing of the Liberal Democratic Party and its coalition partner, the New
Komeito party, and were sent to the House of Councillors.
     From the opposition, the Democratic Party of Japan, the Social
Democratic Party and the People's New Party walked out of the plenary
session when the voting took place as a means of protest at the extra
budget.
     The confrontation between the ruling and opposition parties now moves
to the opposition-controlled upper house, where the main opposition DPJ
plans to boycott deliberations on the budget proposal for the time being.
     After the lower house session, Prime Minister Taro Aso said he hopes
the extra budget and the related bills will be deliberated and voted on
swiftly at the upper house, while expressing the government's plan to submit
the fiscal 2009 budget to parliament Monday.
     ''As the possibility for the Diet to pass (the budgets) within this
fiscal year has heightened, I will instruct related ministers, including the
internal affairs and communications minister, to prepare to implement''
economic measures swiftly, Aso told reporters.
     Following approval in the lower house, the second extra budget will
clear the upper house after 30 days even if the upper chamber opposes its
passage, under a stipulation in the Constitution concerning budget
proposals.
     But the ruling parties may have to hold a second vote in the more
powerful lower house to pass the bills related to the extra budget, as the
stipulation applies to budgets, not proposed legislation.
     To enact a bill other than a budget, the ruling parties can hold a
revote in the lower chamber to pass it if the upper house rejects it or
holds no vote within 60 days of receiving the bill.
     Meanwhile, the DPJ has judged that it will be difficult for the party
to gain voters' understanding if it continues boycotting deliberations,
according to the party's senior upper house member.
     Based on such a view, the DPJ is seeking to accept holding
deliberations in the upper house when it submits a bill to the chamber to
amend the second extra budget to remove the cash handout program, while
continuing to study the timing of submitting the amendment bill.
     The DPJ is opposed to the 2 trillion yen cash handout, which it sees as
a vote-buying tactic by the ruling bloc.
     The ruling parties aim to have the government deliver policy speeches
to the Diet either on Jan. 23 or 26, while seeking to have the fiscal 2009
budget clear the lower house by Feb. 20.
     If opposition parties delay deliberations on the second extra budget in
the upper house for a long time, the ruling parties would eye holding
deliberations on the second extra budget and the fiscal 2009 budget
concurrently in both chambers.
     Former administrative reform minister Yoshimi Watanabe, who quit the
LDP earlier in the day, left the lower house plenary session before the
voting. He has said he would show his ''will to protest'' against the cash
handout plan.
     Kenta Matsunami, parliamentary secretary for the Cabinet Office and an
LDP lawmaker, also walked out of the session, telling reporters that the 2
trillion yen allotted for the cash handout program should be used for
medical services and employment.
     Matsunami later submitted his resignation as parliamentary secretary to
Chief Cabinet Secretary Takeo Kawamura, who accepted it. But Matsunami
denied having any intention of leaving the LDP, saying there is no common
ground between him and Watanabe.
     Prior to the plenary session, the second extra budget passed the Budget
Committee of the lower house with majority approval by the ruling parties.
Lawmakers of three opposition parties -- the DPJ, the SDP and the PNP --
refused to vote, while the Japanese Communist Party voted against it.
     The related bills also passed three other lower house committees by a
majority from the ruling parties.
     At the budget committee, Aso suggested his intention to compile an
extra budget for fiscal 2009 at an early time if additional economic
measures are needed.
     ''We must place priority on the economy in the short term,'' Aso said,
adding that the government will observe fiscal discipline after the economy
recovers.
     The second extra budget includes support measures for households, small
businesses and regional economies hit hard by the current economic slowdown.
It also features the 2.04 trillion yen cash handout, under which a minimum
of 12,000 yen is to be disbursed per person.
==Kyodo

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TOKYO, Jan. 13 KYODO

     A second supplementary budget for fiscal 2008 aimed at reinvigorating
the economy cleared the House of Representatives with majority support from
the ruling parties Tuesday despite the opposition bloc's protests over an
unpopular cash handout plan included in the budget proposal.
     The 4.79 trillion yen extra budget for the 12-month period through
March and related bills passed the lower house's plenary session with the
backing of the Liberal Democratic Party and its coalition partner, the New
Komeito party, and were sent to the House of Councillors.
     From the opposition, the Democratic Party of Japan, the Social
Democratic Party and the People's New Party walked out of the plenary
session when the voting took place as a means of protest at the extra
budget.
     The confrontation between the ruling and opposition parties now moves
to the opposition-controlled upper house, where the main opposition DPJ
plans to boycott deliberations on the budget proposal for the time being.
     After the lower house session, Prime Minister Taro Aso said he hopes
the extra budget and the related bills will be deliberated and voted on
swiftly at the upper house, while expressing the government's plan to submit
the fiscal 2009 budget to parliament Monday.
     ''As the possibility for the Diet to pass (the budgets) within this
fiscal year has heightened, I will instruct related ministers, including the
internal affairs and communications minister, to prepare to implement''
economic measures swiftly, Aso told reporters.
     Following approval in the lower house, the second extra budget will
clear the upper house after 30 days even if the upper chamber opposes its
passage, under a stipulation in the Constitution concerning budget
proposals.
     But the ruling parties may have to hold a second vote in the more
powerful lower house to pass the bills related to the extra budget, as the
stipulation applies to budgets, not proposed legislation.
     To enact a bill other than a budget, the ruling parties can hold a
revote in the lower chamber to pass it if the upper house rejects it or
holds no vote within 60 days of receiving the bill.
     Meanwhile, the DPJ has judged that it will be difficult for the party
to gain voters' understanding if it continues boycotting deliberations,
according to the party's senior upper house member.
     Based on such a view, the DPJ is seeking to accept holding
deliberations in the upper house when it submits a bill to the chamber to
amend the second extra budget to remove the cash handout program, while
continuing to study the timing of submitting the amendment bill.
     The DPJ is opposed to the 2 trillion yen cash handout, which it sees as
a vote-buying tactic by the ruling bloc.
     The ruling parties aim to have the government deliver policy speeches
to the Diet either on Jan. 23 or 26, while seeking to have the fiscal 2009
budget clear the lower house by Feb. 20.
     If opposition parties delay deliberations on the second extra budget in
the upper house for a long time, the ruling parties would eye holding
deliberations on the second extra budget and the fiscal 2009 budget
concurrently in both chambers.
     Former administrative reform minister Yoshimi Watanabe, who quit the
LDP earlier in the day, left the lower house plenary session before the
voting. He has said he would show his ''will to protest'' against the cash
handout plan.
     Kenta Matsunami, parliamentary secretary for the Cabinet Office and an
LDP lawmaker, also walked out of the session, telling reporters that the 2
trillion yen allotted for the cash handout program should be used for
medical services and employment.
     Matsunami later submitted his resignation as parliamentary secretary to
Chief Cabinet Secretary Takeo Kawamura, who accepted it. But Matsunami
denied having any intention of leaving the LDP, saying there is no common
ground between him and Watanabe.
     Prior to the plenary session, the second extra budget passed the Budget
Committee of the lower house with majority approval by the ruling parties.
Lawmakers of three opposition parties -- the DPJ, the SDP and the PNP --
refused to vote, while the Japanese Communist Party voted against it.
     The related bills also passed three other lower house committees by a
majority from the ruling parties.
     At the budget committee, Aso suggested his intention to compile an
extra budget for fiscal 2009 at an early time if additional economic
measures are needed.
     ''We must place priority on the economy in the short term,'' Aso said,
adding that the government will observe fiscal discipline after the economy
recovers.
     The second extra budget includes support measures for households, small
businesses and regional economies hit hard by the current economic slowdown.
It also features the 2.04 trillion yen cash handout, under which a minimum
of 12,000 yen is to be disbursed per person.
==Kyodo


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