Photo by ilya_ktsn
Despite his dropping popularity, Prime Minister Naoto Kan succeeded in passing the government’s ¥4 trillion emergency budget Monday, which will cover some of the rebuilding costs after the March 11 earthquake and tsunami and nuclear crisis.
The emergency budget, which was proposed a last week will help cover the costs of removing some of the rubble in the streets and building temporary houses – for residents who were forced to flee their homes.
This emergency budget is expected to be the first of many as the country rebuilds its infrastructure; however, it could be more difficult for the government to pass more spending legislation as the country’s debt continues to grow. Although Kan’s Democratic Party controls the Lower House, the Liberal Democratic Party controls the Upper House and could block any future budgets.
The government has said that they will raise the money for the ¥4 trillion budget by cutting public spending and raising some taxes. In previous statements, they have said that they will not raise money by introducing new government bonds. [RT]