The LDP's Decision to Abolish Policy Activity Expenses
On November 19, the Liberal Democratic Party (LDP) decided to abolish "policy activity expenses," a controversial fund distributed to individual lawmakers with no obligation to disclose how it was spent. This decision followed public outrage over reports of LDP factions failing to properly report large sums of money from fundraising parties.
The LDP's decision will be included in a proposal currently being reviewed by the party's political reform headquarters and finalized by November 21. Following discussions with coalition partner Komeito and opposition parties, the LDP aims to revise the Political Fund Control Law by the end of the year.
Policy activity expenses were intended to expand the party's influence and develop policy. However, the lack of transparency surrounding their use raised concerns. In response, the government revised the Political Fund Control Law in June, requiring receipts for policy activity expenses to be released 10 years after they are spent. However, the timing of implementation remained unclear.
Following the LDP's loss of seats in the Lower House election in October, Prime Minister Shigeru Ishiba instructed the party to discuss abolishing policy activity expenses. The LDP's draft proposal for the law revision initially included options for both abolishing and maintaining the funds. However, discussions led to the decision to abolish them to prevent their distribution to individual lawmakers.
The LDP's plan includes exceptions for expenditures involving diplomatic secrets or matters affecting the privacy of recipients. These expenses will be audited by third parties instead of being fully disclosed.