Photo/Illutration Itsunori Onodera, center, the policy chief of the ruling Liberal Democratic Party, meets with reporters on Feb. 21 alongside his counterparts from junior coalition partner Komeito and the opposition Nippon Ishin (Japan Innovation Party). (Takeshi Iwashita)

The ruling coalition and opposition Nippon Ishin (Japan Innovation Party) agreed to education and social welfare policies that will ensure passage of the fiscal 2025 budget.

This followed a Feb. 21 meeting between the policy chiefs of the ruling Liberal Democratic Party and junior coalition partner Komeito with their Nippon Ishin counterpart.

Prime Minister Shigeru Ishiba is expected to announce a formal agreement with the heads of Komeito and Nippon Ishin next week.

Lacking a majority, the ruling coalition needs the support of opposition parties to pass legislation in the Lower House.

The agreement with Nippon Ishin revolves mainly around making senior high school education free and lowering social insurance premiums.

There is also a provision that calls for passing the budget by the end of March after revisions are made to pay for the policies to which the parties agreed.

Free senior high school education will come in a two-stage process.

For fiscal 2025, a maximum 118,000 yen ($790) will be provided to all public and private senior high students and the income limit on households to obtain the support will be eliminated.

From fiscal 2026, the amount provided to those attending private institutions will be raised from a maximum 396,000 yen yearly to 457,000 yen. The income limit will also be eliminated.

Scholarships for children from low-income households will also be expanded.
The measures are expected to cost about 550 billion yen.

The ruling coalition has also been holding talks with other opposition parties, including the Democratic Party for the People, on raising the minimum income level at which income tax is applied.

The DPP has called for a sharp increase from the current 1.03 million yen.

On Feb. 21, officials in charge of the tax system commissions of the ruling coalition and DPP met, but the DPP rejected a proposal from the ruling coalition to add tax exemptions for those with annual incomes up to 8.5 million yen.

(This article was written by Kohei Morioka and Kenji Izawa.)

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