Uncertainty Surrounds Japan’s Opposition Parties’ Prospects within National Social Security Council with Late Start, Divided Views

By Arata Hara / Yomiuri Shimbun Staff Writer

21:03 JST, March 25, 2026

Three opposition parties — the Centrist Reform Alliance, the Constitutional Democratic Party of Japan and Komeito — have decided to join the cross-party national council on social security, following the government’s plan to draft a provisional budget proposal in the event the budget for fiscal 2026 fails to pass within this fiscal year.

While the three parties align on introducing refundable tax credits — a system combining income tax cuts with the provision of benefits — it remains to be seen whether they will be able to achieve results at the national council, in which discussions have already begun.

The secretaries general of the three parties — Takeshi Shina of the CRA, Masayo Tanabu of the CDPJ and Makoto Nishida of Komeito — met at the Diet Building on Tuesday.

After the meeting, Shina told reporters that the three parties decided to join the national council because “the compilation of the provisional budget is proceeding in a way that accommodates the opposition’s demands and the conditions have been met.”

Although the three parties had indicated their intention to participate in the national council, they had not specified when they would attend.

This was because they had opposed the House of Representatives Budget Committee proceeding at the pace set by the ruling parties, in line with Prime Minister Sanae Takaichi’s intention to pass the fiscal 2026 budget proposal by the end of this fiscal year on March 31.

After the budget proposal passed the lower house, the CDPJ, which only has members in the House of Councillors, had called for thorough deliberations in the upper house and the formulation of a provisional budget proposal.

With the government accepting these demands, the CDPJ softened its stance. As progress was made on issues such as the release of minutes of the council, the three parties determined that the conditions for participation were now in place.

With CRA leader Junya Ogawa describing the introduction of refundable tax credits as a “long-cherished goal” since the days of the now-defunct Democratic Party of Japan, the three parties intend to establish a team to incorporate their proposals at the national council.

However, a month has already passed since its first meeting on Feb. 26. The three parties have not been involved in selecting members for the council’s expert panel, and Team Mirai and the Democratic Party for the People have already participated in the two working-level meetings held so far. As a result, the three parties seem to have made a late decision to participate in the council.

If discussions on a consumption tax cut for food items proceed, the differing positions of the three parties may come to the fore. While Takaichi aims to set the consumption tax rate to zero for two years, the CRA advocates for a permanent zero, the CDPJ supports a zero for one year in principle, and Komeito calls for a permanent reduction.

Taking a precautionary stance, Shina said, “Depending on the content, we may choose not to participate [in part] or even withdraw.”