Tokyo, Nov 12 (IANS) Japanese Prime Minister Shigeru Ishiba held onto his position in a rare runoff vote, marking the first such election in the House of Representatives in three decades and underscoring the difficulties facing his leadership as he moves forward with a minority government amid mounting obstacles.

The first round of lower house voting for the country's next prime minister saw Ishiba take the lead but fall short of a majority, prompting a runoff against Constitutional Democratic Party leader Yoshihiko Noda, Xinhua news agency reported.

Ishiba, 67, ultimately secured the position with 221 votes in the 465-seat lower house against Noda's 160, but political analysts highlighted that his government will now rely heavily on opposition cooperation to pass critical legislation, as the ruling coalition's minority status will necessitate support from other parties for the passage of laws and budget approvals.

In the recent general election, Japan's ruling coalition, consisting of the Liberal Democratic Party (LDP) led by Ishiba and its ally, Komeito, suffered a significant setback, losing its long-held majority and reducing its seats to 215, well below the 233-seat majority threshold required for smooth governance.

After assuming premiership, Ishiba reshuffled his cabinet, replacing only the ministers who were not re-elected in the lower house.

The foremost challenge for Ishiba's new cabinet is to establish fresh economic policies and a new budget. The LDP is actively seeking collaboration with the Democratic Party for the People, which has shown a relatively positive response.

The two parties are in discussions regarding tax reform, aiming to establish a "partial alliance" for cooperation on specific policies.

However, as per the latest inter-party negotiations, the opposition now holds seven out of the 17 committee chair positions in the House of Representatives, including the Budget Committee, which is crucial for budget deliberations. The last time the opposition chaired this committee was 30 years ago, signaling a significant shift in Japan's political landscape.

Economists pointed out that the Ishiba cabinet will face limited fiscal flexibility. Hideo Kumano, chief economist at Dai-ichi Life Research Institute, emphasised that the cabinet's ability to maneuver financially is heavily restricted.

Atsushi Koketsu, emeritus professor at Yamaguchi University, said that Japanese politics will now evolve through checks and balances between the ruling and opposition parties as the opposition chairing the Budget Committee marks a major shift in Japanese politics.

Worse still, the LDP is still grappling with the slush funds scandal, which remains a potential liability. Shortly after the House of Representatives election, the LDP decided to reinstate former party officials who had previously run as independents after facing disciplinary actions, which once again stirred public dissatisfaction.

The opposition parties are reportedly planning to demand a renewed investigation into the scandal, pushing for implicated lawmakers to testify before an ethics committee. It remains uncertain whether the LDP can overcome this scandal and regain voter confidence.