Japan’s Kishida unveils new child care plan

Japanese Prime Minister Fumio Kishida unveiled on Tuesday a package of wide-ranging measures to reverse a dwindling birthrate, saying the problem needed to be tackled as an ageing population threatens the world’s third-largest economy. Kishida’s flagship policy comes amid speculation that he will dissolve parliament’s lower house this week and call a snap election, a move that could heighten calls from within his ruling party for big spending to boost its support amongst the electorate. “Now is the last chance to reverse the downtrend in childbirth by the 2030s,” Kishida told a televised press conference. “The low birthrate is a massive problem that concerns our country’s society and entire economy and can’t be put off,” he said. “Without arresting the fast-declining birthrate and populations, Japan’s economy and society would shrink, making it difficult to maintain social security systems.” With measures such as bigger payouts to families with children and providing homes for hundreds of thousands of such households, Kishida said he hoped to double child care spending by the early 2030s, from about 4.7 trillion yen ($33.7 billion) now. The package may help his party appeal to the public, fanning speculation of an early election. Although an election for parliament’s powerful lower house is not due until late 2025, Kishida, who swept to power in October 2021, is keen to boost his grip over the party ahead of a leadership race next September, analysts say.