The Council on Fiscal Systems, an advisory body to the Minister of Finance, has clarified its stance that deficit government bonds will not be allowed to cover the financial resources necessary to strengthen measures to address the declining birthrate that the government is aiming for, stating that "postponing it to future generations is the end of the story."
The Council on Fiscal System has compiled recommendations on policies and financial resources that are in focus ahead of the government's "Basic Policy" next month at its meeting on the 29th.
The proposal pointed out that the government's measures to address the declining birthrate "will have a significant impact on the medium- to long-term growth potential of the Japan economy and the sustainability of public finances and social security, and will determine the fate of the nation."
With regard to financial resources, he stated that "postponing it to the generation of children who will be born in the future would be the end of the world," and clarified his stance that it would not be allowed to cover the deficit with government bonds.
Furthermore, it states, "In addition to prioritizing measures that are truly necessary, it is necessary to consider a new framework in which all participants in society and the economy, including companies, will bear the burden widely on a fair footing."
At that time,
he pointed out that it is important to ensure that the increase in benefits for child-rearing households exceeds the increase in burden, and
to minimize the increase in insurance premium burden of the working generation.
In formulating the proposal, some members expressed the opinion that taxes should not be excluded from the list of options when considering financial resources.
In addition to reforming expenditures on social security expenses, the government intends to secure about 3 trillion yen per year by adding new support funds to social insurance premiums.
On the other hand, LDP Secretary-General Motegi said on March 28, "In terms of fiscal resources, the first step is to thoroughly reform expenditures, and we are not considering raising or increasing social insurance premiums."