Japanese Prime Minister Shigeru Ishiba issued an apology on Friday after admitting to giving gift certificates to some ruling party lawmakers. The controversy threatens to further weaken his already low approval ratings and could delay the passage of next fiscal year’s budget, adding to political and economic uncertainty.
Ishiba, speaking in parliament, acknowledged that he used “pocket money” to hand out gift certificates to 15 Liberal Democratic Party (LDP) lawmakers before a dinner on March 3. He described the gifts as a “show of appreciation” for their efforts in getting elected. However, domestic media reported that each lawmaker received gift certificates worth 100,000 yen ($673), raising concerns over political ethics.
“My action caused distrust and anger among many people, for which I deeply apologise,” Ishiba said in response to questions from ruling party lawmakers. While he maintained that the gifts were personal and did not violate any laws, the move has drawn criticism from both opposition leaders and members of the LDP’s coalition partner, with some calling for his resignation.
The controversy has emerged at a crucial time, with Japan’s economy facing headwinds from an escalating trade war initiated by US President Donald Trump. Market analysts warn that political instability could further unsettle investors. “Market volatility is heightening on uncertainty over US and European economic policies. But now, market players may need to look more carefully at domestic political developments,” said Yusuke Matsumoto, a senior market economist at Mizuho Securities.
The issue has also complicated efforts to pass the government’s budget for the fiscal year beginning in April. The LDP has already had to make rare amendments to the budget to appease opposition parties, and failure to secure approval by the March 31 deadline could force the government to implement a stop-gap budget. Such a delay could hurt Ishiba’s standing and disrupt economic planning.
Tetsushi Sakamoto, chairperson of the LDP’s Diet affairs committee, acknowledged that the controversy could dampen prospects for passing the budget on time.
The timing is particularly sensitive, with an upper house election set for July. Ishiba’s coalition holds a slim majority, and his administration has already been shaken by previous scandals involving unrecorded donations to lawmakers. A recent NHK poll showed his approval rating had fallen to 36%, down from 44% in February.
Japan’s economy remains fragile, with growth slowing amid rising living costs and weakening global demand. While it expanded by an annualised 2.8% in the final quarter of last year, analysts expect growth to decline sharply to just 0.4%. If Ishiba fails to regain public trust, his government’s stability—and Japan’s economic outlook—could face further turbulence in the months ahead.
Melissa Enoch
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