Fiscal Council: Opinion that "financial resources for measures to address the declining birthrate should be considered in combination"

The Council on Fiscal Systems, an advisory body to the Minister of Finance, discussed measures to address the declining birthrate at its meeting on November 11, and members expressed the opinion that the necessary financial resources should be considered in terms of a combination of taxes, social insurance premiums, and expenditure reform.

At the meeting on November 11, discussions were held on strengthening measures to address the declining birthrate, which Prime Minister Kishida is aiming for.

At the meeting, a Ministry of Finance official stated that it is necessary to design a system in which society as a whole, including companies, bears a wide range of financial resources for measures to address the declining birthrate, so that the burden is not disproportionately placed on specific groups, minimizes the increase in the burden of social insurance premiums on the working generation, and increases the take-home payment for child-rearing periods compared to the past.

On this basis, he pointed out that, in order to gain a sense of satisfaction from those who bear the burden, expenditures for measures to address the declining birthrate should be devised so that the overall picture of how they will be used should be seen, rather than being bound by vertical divisions by ministries and agencies.

In response to this, members expressed the opinion that the best mix of taxes, social insurance premiums, and expenditure reform = optimal combination of financial resources for measures to address the declining birthrate should be considered, and that reforms such as the burden on the elderly at the counter and the out-of-pocket burden for nursing care should be promoted in order to reduce the burden on the working generation.

With regard to measures to address the declining birthrate, Prime Minister Kishida has indicated that he intends to present a broad framework for doubling the budget in the future in the "Basic Policy" to be compiled next month, and the idea of utilizing insurance premium revenues has been floated within the ruling parties.

"Combination is important for securing long-term stability"

Hiroya Masuda, Deputy Chairman of the Council on Fiscal Systems, commented on the financial resources needed to strengthen measures to address the declining birthrate, saying, "In order to secure stable financial resources over the long term, a combination is important. It is necessary to combine this with expenditure reform to generate financial resources."