Prime Minister Fumio Kishida pledged in January to tackle the country's declining birth rate by submitting plans to double the budget for child-related policies by June. During the TV programme, which was recorded on Monday, Seko also spoke out against tightening Japan's current ultra-loose monetary policy. "Interest rates will probably rise naturally if we can sustainably achieve the 2% price goal and wages rise in accordance with that," the former economy minister said, adding he was against tightening when 2% inflation had not been achieved. The Bank of Japan (BOJ) maintained ultra-low interest rates on Friday ahead of a leadership transition in April. Incoming governor Kazuo Ueda has echoed current governor Haruhiko Kuroda's calls to keep an ultra-loose policy, but has also said he had ideas on how to exit low rates. (Reporting by Sakura Murakami; Editing by Jamie Freed)
TOKYO, March 12 (Reuters) - Japan's efforts to counter
the country's declining birth rate by doubling the budget for
child-related policies could possibly be covered by government
bonds, a ruling party heavyweight lawmaker said in a television
programme broadcast on Sunday.
"I think it's completely plausible to consider covering it
with government bonds," Liberal Democratic Party (LDP) lawmaker
Hiroshige Seko said during a segment on BS TV Tokyo regarding
the government's policy to take "unprecedented" steps in
countering Japan's falling birth rate.
Seko, currently the LDP's secretary-general for the upper
house, said there needed to be a discussion on whether to fund
the policy with government bonds, taxes, an insurance scheme, or
a combination of different sources, but added that funding
through government bond issuance "should be allowed."
Births in Japan plunged to a new record low of just below
800,000 last year, according to official records.
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