Japanese Prime Minister Fumio Kishida yesterday was to unveil a package of measures aimed at reversing the nation’s dwindling birthrate, by increasing payouts to families with children.
The announcement of his flagship policy came amid speculation that Kishida would dissolve parliament this week and call a snap election, a move that could heighten calls from within his ruling party for big spending.
Although an election for parliament’s powerful lower house is not due until late 2025, Kishida, who swept to power in October 2021, is keen to boost his grip on power in the party ahead of a leadership race in September, analysts say.
Photo: Reuters
MORE FUNDING
The package, which Kishida was to explain at a news conference, might help his party appeal to the public with promises of payouts.
Kishida has said he hopes to double childcare spending, now about ￥4.7 trillion (US$33.7 billion), by the early 2030s.
Under the plan, the Japanese government is likely to earmark about ￥3.5 trillion annually for the next three years for childcare allowances and support for those taking childcare leave.
The government is also to urge companies to allow employees to choose more flexible working styles, such as taking three days off a week, according to a draft of the package.
However, analysts doubt whether the package would do much to stem a chronic decline in the birthrate and Japan’s rapidly aging population.
“While the steps could help families with children, the real problem that must be dealt with is how to support low-income households unable to get married,” Daiwa Securities chief economist Toru Suehiro said.
NO TAX INCREASE
There was also uncertainty on how the government would fund the measures, with Kishida ruling out the chance of a near-term tax increase, stoking fears of a worsening of Japan’s already tattered finances.
The government would work out the details of securing stable sources of funding by the end of the year, officials have said.
Japan’s birthrate has been on a steady decline despite a series of government initiatives to reverse the trend, dropping to a record low of 1.26 last year from 1.57 in 1990, government data showed.
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