Japan’s $25 Billion Plan to Increase Birth Rate and Support Young Families

Jakarta –

Japan’s birth rate has fallen drastically, triggering a population crisis in the country. Therefore, the Japanese government plans to spend USD 25 billion (Rp 370 trillion) in an effort to support young people and families to have children.

Furthermore, those with children receive greater subsidies for education and prenatal care. Other efforts to increase birth rates include promoting flexible working styles and paternity leave.

Japanese Prime Minister Fumio Kishida said he was proposing policies to tackle an “unprecedented” decline in the birth rate. In addition, he also proposes policies to increase income for young people and the child-rearing generation.

“We will move forward with these measures to fight the declining birth rate without asking society to bear the burden further,” he said as quoted by Channel News Asia, Sunday (4/6/2023).

While many developed countries struggle with low birth rates, the problem is particularly acute in Japan.

This is because Japan has the second oldest population in the world after Monaco and has relatively strict immigration rules. As a result, Japan is facing a growing labor shortage.

The country of 125 million registered fewer than 800,000 births last year, the lowest since records began in 1899. Meanwhile, the cost of caring for the elderly has soared.

In a meeting held on Thursday (1/6), Kishida said he wanted to budget around IDR 370 trillion for the next three years for this policy. The meeting was attended by ministers, experts and business leaders.

However, this push has drawn criticism for its failure to identify sources of funding other than cutting spending elsewhere and boosting the economy.

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(after/kna)