Yoshio Mitsumori07.20.06
During the Diet session, the MHLW forecasted that social security benefits to be spent for pension, welfare, medical and nursing services will increase to 142 trillion Yen (US $1.3 trillion) by fiscal 2025, which is 72% higher than the current level, even incorporating the potential effects of the proposed reform plan now on session. The total amount of tax and social insurance premium to be spent for pension, welfare, medical and nursing care for fiscal 2006 is estimated to be about 82.8 trillion Yen (US $750 billion), while approximately 3 trillion Yen (US $27 billion) will increase in every single year until 2025. The MHLW has been trying to demonstrate its concern about the ever-growing expenditure for the future.
Another epoch-making announcement was the continuously declining birth rate.
According to the latest statistics, the average total fertility rate for Japanese woman is reportedly only 1.25, which is the lowest among leading countries.
To maintain a stable social security system over the long term, the lower fertility issue is the most critical problem both politically and socially, similar to the plight of the growing elderly population. However, the general awareness of this situation, particularly among younger generations, is not high enough. This will become a serious problem for Japan over time.