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Japan PM orders $26 bln to be set aside for childcare, more debt may follow

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Tokyo –

The Japanese government will allocate 26 billion dollars for the new baby

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Care measures, slightly more than previously estimated, in step

It is likely to add more debt to the world’s heaviest industrialized country

public debt burden.

Prime Minister Fumio Kishida has pledged to double that number

Over the next three years to arrest the country

Declining birth rate, even if it means increasing exacerbations

The government’s fiscal position.

Kishida told ministers on Wednesday that he wanted to

Increased planned spending on child care, which comes on top

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The administration’s economic policy agenda for the middle of the year

Guidelines to be adopted in mid-June.

Actions aim to support higher education,

Preventing mistreatment of children in poverty, and ensuring medical care for them

Economy Minister Shigeyuki Goto cited disabled children

Kishida says at the ministers meeting.

He added that there was no discussion about funding sources.

Japan is already the most indebted country in the industrialized world

A government with a public debt more than twice its size

its economy.

The government is leaning towards introducing a new type

Bonds to raise money for tuition fees, Kyodo News

mentioned.

Talking about this budget comes at a delicate time when

The government is trying to bring in the primary budget surplus during

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Government debt balloons, said Koya Miamae, chief economist

at SMBC Nikko Securities.

It can complicate matters when it comes to the bank

From Japan to change monetary easing with the risk of rising

borrowing costs.”

Ghost doubling childcare alongside the military

The spending is intended to deal with threats from China and North Korea

Contradicts any move towards financial reform.

Kishida has ruled out increasing sales tax as an option.

While his government is looking to take advantage of the increasing premiums for

General medicine and cut other social care expenditures to fund it

More spending on child care.

Births in Japan fell to a record low in 2022, it’s official

It is estimated to drop below 800,000 for the first time – a

A watershed moment came eight years ago

Government expected.

($1 = 135.0500 yen)

(Reporting by Yoshifumi Takemoto and Tetsushi Kagimoto; Editing

Written by Himani Sarkar and Kim Coghill)

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