EDITORIAL: The child allowance

The Hatoyama administration has signaled it is considering whether it should stick to its public pledge to raise the child allowance--a major drawcard in its election manifesto--to the full 26,000 yen ($288) a month starting next fiscal year. Given the state of public finances, this is only to be expected.

Payments for fiscal 2010 are due to start next month. Parents of children of up to junior high school age will receive 13,000 yen monthly for each child. What is the administration going to do on this issue when it drafts the budget for the next fiscal year?

A working-level panel made up of government and party officials has been weighing what increase is feasible based on financial conditions. It has also considered diverting budgetary funds for supplies and services such as child-care and vaccines.

While there is strong opposition within the ruling Democratic Party of Japan, the manifesto conference that Prime Minister Yukio Hatoyama and DPJ Secretary-General Ichiro Ozawa will shortly attend should clearly state that full payment cannot be made next fiscal year.

We appreciate that the administration wants to stick to its promise. But, to do so, it will require fiscal revenues to the tune of 5.4 trillion yen ($60 billion) a year.

As long as there is no prospect of finding the funds, even after reducing wasteful annual spending, the only reasonable option facing the government will be to consider fundamental tax system reform that includes raising the consumption tax rate.

If it decides to stick to its guns, no matter what, it could result in a shortfall of funds for improvements in day-care centers, medical treatment and welfare services.

Moreover, it would mean passing huge debts to our children's generation. That would defeat the purpose.

As it is, the payment of half the amount this fiscal year has to be made with borrowed money. Reckless spending through indebtedness cannot continue. We urge the government to come clean and admit before the Upper House election this summer that it cannot make full payments due to the lack of funds.

Responsible politics entail policies that realistically can be implemented.

Will the money distributed by the child allowance program really be used for children? Where did the administration come up with the figure of 26,000 yen? These questions remain unanswered.

The administration must refrain from recklessly following through with its original plan.

Some parents have made heartfelt appeals to the government to build more day-care centers and improve after-school care programs rather than offer cash handouts.

It is none other than Akira Nagatsuma, the minister of health, labor and welfare, who has repeatedly explained in the Diet that it is important to maintain a balance between cash payments and such services.

How will the child allowance be actually used and what impact will it have in the first year? Why not monitor the situation and then figure what will work best?

The public shares the idea that more support for child-care and education should be provided for the future of Japan. We fully support any policy aimed at expanding social security for young people.

That is all the more reason that policies for children should have a wider focus than cash handouts.

What policies are urgently needed and how can funds be secured to implement them? It is only through thorough policy debate that we will see what child allowance system ought to be in place.

--The Asahi Shimbun, May 27