In yet another effort to address the falling birthrate, the Japanese government is discussing borrowing from the public employment insurance account and the road improvements account to fund measures in fiscal 2007. The recent economic upturn in Japan has led to an increase in the employment insurance fund, and fewer unemployed people means that fewer benefits are being paid out.

The government sees tackling the falling birthrate as a priority, and hopes the public will approve the temporary action of borrowing from the other accounts until tax reform is implemented.

The Ministry of Health, Labor and Welfare has already allocated 886 billion yen (about US$8 billion) in fiscal 2006 for more child-care allowance, and reducing waiting lists at day care centers. However, the money borrowed from the other accounts will be used to cover a shortfall in funding for existing measures to tackle the falling birthrate as the budget for 2007 further cuts social welfare.

It is expected that the government will face criticism over these actions as the funds were set up for specific use, and it is argued that taxes should be lowered instead.