In order to intensively strengthen measures to address the declining birthrate over the next three years, the government is considering securing new annual financial resources of about 3 trillion yen through expenditure reforms for social security costs such as medical and nursing care and additional social insurance premiums. We hope to double the budget in the early 3s, and we are coordinating with the ruling parties and others.

With regard to financial resources to intensively strengthen measures to address the declining birthrate over the next three years, Prime Minister Kishida has indicated his intention to establish a framework for society as a whole to support each other, rather than raising taxes such as the consumption tax.

The government is in full swing discussing fiscal resources, and is considering securing about 3 trillion yen per year for new measures such as thorough expenditure reform of social security costs such as medical and nursing care and additional social insurance premiums.

Of these, we are making adjustments to add to social insurance premiums based on a proposal to have them pay as new support payments using a medical insurance system in which companies also pay premiums, in addition to a wide range of generations, including the working generation and the elderly aged 3 and over.

The increase is expected to be made up after fiscal 75, and the shortfall in fiscal resources up to that point is being compensated for by the issuance of government bonds for the time being.

On the other hand, of the approximately 2026 trillion yen to be secured, the largest, approximately 3.1 trillion yen, will be allocated to the expansion of child allowances, and in addition to abolishing income restrictions and extending the target age until high school graduation, the so-called multi-child addition, which is currently paid to the third child from the age of three to elementary school students, will be 2000,3 yen per month. Discussions are underway to see if it can be doubled to 3,1 yen.

After these intensive efforts over the next three years, the government intends to double the budget for children and child-rearing set by Prime Minister Kishida in the early 5000s, and the base for doubling will be the budget of the Children and Family Agency, which currently stands nearly 3 trillion yen.

In addition, in order to clarify that it is being used to address the declining birthrate, we are coordinating with the ruling parties and others on a policy of establishing a special account to centrally manage the budget for children and child-rearing.

The background to "not raising taxes but adding to social insurance premiums"

Why did Prime Minister Kishida indicate that he would not raise taxes?

With regard to financial resources for measures to address the declining birthrate, some experts and the business community pointed out the necessity of raising taxes, saying that the burden should be broadly borne by society as a whole.

However, the majority of the government and ruling parties have already announced a policy of raising taxes to strengthen defense capabilities, and that it would be difficult to ask the public to bear a further tax burden, and Prime Minister Kishida seems to have given consideration to these opinions.

On the other hand, regarding the proposal to secure part of the financial resources by adding to social insurance premiums, which are often paid by individuals and companies on a labor-management basis, one government official said, "If the birthrate continues to decline, it will become difficult to maintain the social insurance system and corporate activities, so it will be easier to understand."

However, there have been objections to the use of the social insurance premium system from the business and labor communities, saying that it would undermine the momentum for wage increases, and discussions are expected to continue toward the compilation of the final draft.