Japan’s LDP retains majority in parliament despite losses

Despite dropping seats, Japan’s prime minister Fumio Kishida’s ruling Liberal Democratic Party (LDP) defied expectations and secured a sole majority in the lower house in Sunday’s parliamentary election.

The conservative party, which has dominated Japanese politics for decades, won a solid majority on its own. The initial exit polls suggested the LDP would have to rely on Komeito, another conservative party in Japan, to keep a majority. However, the LPD went into Sunday’s general election holding 276 and claimed 261 by the end, clearing the threshold of 233 out of 465 seats up for grabs in Japan’s lower house.

Sunday’s vote concerns the Lower House of Representatives, which is the more powerful body of Japan’s parliament, while the upper House of Councillors voting is set to take place in 2022.

“It was a very tough election, but the people’s will, that they want us to create this country’s future under the stable LDP-Komeito government and the Kishida administration, was shown,” Kishida told reporters on Monday, declaring the party’s victory.

The LDP’s win solidifies Kishida’s position, who became Japan’s PM a month ago on October 4 and called for the general election soon after taking the top post. Kishida, 64, was previously served as the country’s longest-serving foreign minister from 2012 to 2017. Kishida is expected to call a special parliamentary session on November 10, for a vote to re-elect him as Japan’s 100th PM.

“The ruling LDP, even though it did not deviate significantly from expectations, clearly outperformed the gloomier polls of last week,” John Vail, Chief Global Strategist at Nikko Asset Management said. “This is unlikely to lead to a restructuring of the party in the medium term. Although some LDP heavyweights lost their direct mandates to the opposition, they are allowed to keep their seats thanks to the party’s result. This provides some continuity.”

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Extra budget set to pass

With LDP’s outright majority, the prime minister can now tackle major policy decisions, including trying to pass an extra budget, before the end of this year. The party’s win enables the ruling bloc the control all standing parliamentary committees as well as ease in the passage of legislation.

“I hope to pass through parliament an extra budget this year,” he told reporters on Monday. The extra budget would be compiled to aid workers who lost their jobs and students who have been unable to pay their tuition fees, due to the pandemic.

Before the general election, Kishida had promised to spend trillions of yen to help the world’s third-largest economy to rebound from the coronavirus led economic downturn.

“Post-election, the willingness to allow vaccinated tourists into the country should increase, so some of the travel-related areas of the stock market and the economy should recover in the medium term,” Vail said.