TOKYO (Reuters) -Japan’s government estimates it needs to raise about 3 trillion yen ($22.2 billion) in funds per year for a childcare policy Prime Minister Fumio Kishida has put forward, Jiji news agency reported on Thursday.
The government in March laid out a plan to boost child care over the coming three years to reverse the country’s declining birthrate, but the issue of financing the major spending package, such as tax hikes or debt issues, has been unclear.
Under the planned financing scheme, the government would expand the size of the funds gradually over the three years from fiscal 2024/25 and secure the necessary amount by the end of the policy period, Jiji said.
Kishida has said the government will identify the funds for the childcare policy by June and he was not planning to hike consumer sales taxes to raise the funds.
($1 = 135.0500 yen)
This story originally appeared on Investing
