Japanese Government to Provide 1 Million Won Cash Payment per Person Under 18 Nationwide... Disaster Relief Fund

▲Fumio Kishida, Prime Minister of Japan

[Asia Economy Reporter Kwon Jae-hee] The Japanese government will provide approximately 1 million yen in cash per person to all citizens under the age of 18 before the start of the new school year next year. This is a kind of 'disaster relief fund' as part of COVID-19 related support policies.

According to the Yomiuri Shimbun on the 5th, the Japanese government and the ruling party have decided to provide 100,000 yen (about 1.04 million won) in cash per child and adolescent as part of COVID-19 related support policies.

The Japanese government plans to include the '100,000 yen cash support plan for all citizens under 18' in the large-scale economic measures to be decided on the 19th, reflecting the general election pledges of the coalition ruling parties, the Liberal Democratic Party and Komeito.

The cash support targets children from 0 years old up to third-year high school students, including adolescents not attending school.

There will be no income restrictions, only an age criterion of under 18, so all children and adolescents will benefit.

The target population is about 20 million, and the required budget is estimated at 2 trillion yen (about 200 trillion won) based on a simple calculation.

The Japanese government plans to complete the payments by next spring when the new school term begins.

The '100,000 yen' support plan for those under 18 was proposed by Komeito, the coalition partner, as an election pledge in the general election held on the 31st of last month. The Liberal Democratic Party initially held the position that support should focus on non-regular workers and those struggling financially, but changed its stance to accept Komeito’s pledge, which helped lead to their election victory.

The ruling party and government are separately considering including support measures targeting non-regular workers in the new economic measures, which overall will amount to tens of trillions of yen (hundreds of trillions of won), so the number of cash support recipients is expected to increase.

The Japanese government also distributed 100,000 yen per person to all citizens last year during Prime Minister Shinzo Abe’s administration as a COVID-19 related support fund.

However, most of the funds at that time were saved rather than spent, leading to criticism that the government’s expected consumption stimulation effect was limited.

The Japanese government also plans to include in the new economic measures a support package worth a total of 3 trillion yen that grants points equivalent to 30,000 yen, which can be used like cash, to holders of the 'My Number' card, Japan’s version of a resident registration number.

This content was produced with the assistance of AI translation services.