Financial "advance" to encourage fertility

The Japanese government is considering increasing a portion of social insurance revenue to “advance” financial resources for solutions to cope with the current alarming decline in birth rates.

The Japanese government is considering 'advancing' a portion of its budget by issuing bonds called 'Special Support Bonds for Children' in fiscal 2024. (Source: japantimes)

The additional revenue is equivalent to 500 yen per person per month (about 3.6 USD) and will be implemented from fiscal 2026, according to Japanese government officials.

Previously, the Japanese government developed the “2024-2026 Child Care and Upbringing Support Acceleration Plan” with an additional budget of about 3,000 billion Yen (about 21.5 billion USD) to reduce the financial burden on young families and encourage them to have children.

However, it is expected that this financial source will not be officially mobilized until fiscal year 2026, so the Japanese Government is considering "advancing" a budget by issuing bonds called "Special Support Bonds for Children" in fiscal year 2024 and will be compensated back in two years through additional revenue calculated into the social insurance portion, starting from fiscal year 2026.

A Japanese government official said that with the additional revenue included in the above social insurance, along with health insurance premiums and contributions from businesses, the Japanese government will collect about 1,000 billion Yen (about more than 7 billion USD) per year, enough to offset the "advance" funding to implement the "Plan to accelerate child care and nurturing support for the period 2024-2026".

This is part of the Japanese government's efforts to curb the alarming rate of decline in births in Japan. The focus of the policy package to encourage marriage and create maximum conditions to increase the birth rate is financial support for childbirth and childcare, in addition to other incentives such as buying and renting houses for newly married couples and supporting job security for women after maternity leave.

Source: https://baoquocte.vn/chinh-phu-nhat-ban-ung-truoc-tai-chinh-khuyen-khich-tang-sinh-228426.html