10-06-2025
LDP, Komeito revive plan for cash handouts as election nears
Prime Minister Shigeru Ishiba, right, president of the ruling Liberal Democratic Party, meets with Tetsuo Saito, leader of junior coalition partner Komeito, in May. (Asahi Shimbun file photo)
Cash handouts versus tax cuts.
The ruling coalition and the opposition bloc have settled on differing policies to help the public deal with the rising cost of living, the likely main issue in the Upper House election next month.
The Liberal Democratic Party and its junior coalition partner, Komeito, plan to include the cash handouts in the government's economic measures as well as in their common campaign pledges for the Upper House election, senior government officials said.
At a meeting in Tokyo on June 10, the secretaries-general and other officials of the coalition parties decided that their policy research councils will discuss the amount and other details of the proposed benefits.
Coalition officials have floated the idea of offering tens of thousands of yen per person without setting income limits, and financing the program with a surplus in fiscal 2024 tax revenues, sources said.
The handouts are expected to be provided in cash or through the Myna Point program, which is linked to the government's My Number Card (Individual Number Card) system, to prioritize speedy rollouts, the sources said.
The LDP and Komeito had discussed a plan to give about 50,000 yen ($345) per person in cash handouts in April but eventually scrapped the idea after being criticized by the public as engaging in a dole-out policy.
Calls for reconsidering the cash benefits grew within the ruling coalition when the opposition parties started promising to reduce the consumption tax rate.
LDP leaders have ruled out the possibility of a consumption tax cut as an Upper House election pledge, forcing Komeito to drop the tax reduction from the list of its priority policies.
Komeito already listed the provision of 'livelihood support benefits,' which would return increased tax revenues to the public, as one of its priority policies announced on June 6.
The Upper House election is expected to be held on July 20, with official campaigning likely to kick off on July 3.
