Japan Trying To Boost Birth Rate, Will Be Rewarding New Parents

Japan is now giving the 'Childbirth and Childcare Lump-Sum Grant' to encourage people to have a child and increase their families. 

Japan's ministry of health, labour, and welfare is doing it in an attempt to boost its falling birth rate for some time. The government is offering 420,000 yen to new parents in Japan following the birth of their child.

Japan's health minister Katsunobu Kato pointed out that they are in discussion to increase grant money up to 500,000 yen, for which he also met with the prime minister, Fumio Kishida. He discussed the proposal with Kishida last week. The proposal is said to be approved and enforced for the 2023 fiscal year.

Japan Child Birth Policy

However, there have been reports that the “Childbirth and Childcare Lump-Sum Grant” is not enough to cover all the expenses. One of the primary reasons for people who do not want to have kids in Japan has been the increasing costs. Childbirth fees are supposed to be covered by a person even if the award is supported by Japan's public medical insurance system. Also, the average delivery cost is around 473,000 yen, which is more than the grant provided for now.

Even if it is said to increase up to 5,00,000 yen, the amount is not enough to support the child. After all the expenses during childbirth, a surplus of 30,000 yen is left which is not sufficient for parents to cover childcare. However, leaving all cons of it, on the pro side for new parents could help a little extra. The 80,000 yen increase would be the highest ever for the grant and it's first since 2009.

Japan is not the first country with a reward system for having babies, earlier Finland, Estonia, Italy, Japan, and Australia also coined policies to encourage people to have children. Finland gave a monthly allowance of 100 euros to parents and other family benefits programs. Estonia also has a reward system, the larger the family the more money they receive. It is combined with a year-long paid maternity leave. China is also making such efforts to increase its population. Such efforts are taken indirectly stabilise the economy.

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