A Study on Welfare Finance Issues to Respond to the Declining Birthrate

Abstract

The decade from 2023 to 2032 will be the last period in which the number of females in the prime childbearing age group (31-35 years old) will increase, requiring concentrated policy responses. According to ‘The 4th plan for Ageing Society and Population 2023 Implementation’ of the central government and local governments and the OECD’s Social Expenditure on Family, it is required to guarantee maternity and childcare leave, expand policies from infants and toddlers to all age groups of children, effectively link youth policies with low birth rate response policies, strengthen the role of local governments, and strengthen support for low-income, multi-child, and multicultural households. For this purpose, we can consider operating a ‘(tentative name) Birth and Childcare Fund or a ‘Future Generation Fund’ for the next 10 years temporarily like the cases of Japan and France. Securing financial resources requires review of the current tax system, social insurance, financial system divided into central government-local government-education office, and financial resource distribution structure.