Tokyo DispatchJapan, in EnglishThe Liberal Democratic Party, Nippon Ishin no Kai and the Democratic Party for the People settled on a bill that also changes how proportional seats are allocated and merges two regional blocs.
Shigehiro Hatanaka, a former vice speaker, told reporters he set aside the money after taking the post in 2018, calling the practice a "bad custom" everyone knew about.
The three parties will submit a joint bill within the week to trim proportional-representation seats, aiming for enactment by 2027. Opposition parties say the rules are being rewritten mid-game.
The cabinet has held near 50% support a year after taking office. The conservative-leaning opposition supporters who once backed it have been drifting away since January.
The bill to cut the consumption tax on food and drink and create an income-linked benefit passed the lower house with every opposition party opposed. After more than 30 hours of debate, the government has still not said how it will pay for the cut.
