The right hand giveth in the economic stimulus package

This week, a notice from the municipal government came in the mail. It's yet another kanji learning experience and at the same time, a heads up on Japan's fiscal policy in 2026. The notice says that in April, residents will receive 給付金, kyufukin, a subsidy to counter soaring food prices. Municipal governments dole out the inflation-relief funds, so my city is giving each resident 5000 yen. That's about 7 kilos of rice, 25% of one month's commute to work, or a pair of shoes. Better than nothing, I figure. The stimulus package also provides energy subsidies until March 2026. I'm scared to open my April gas and electricity bills.

The king and queen at Tokyo's Contemporary Museum of Art could use the 5000 yen for shoes

But the budget also an attempt to boost fertility rates. In April, everybody of working age will pay a premium through taxes, 250 yen a month. That works out to 3000 yen annually. The "singles tax" is getting a lot of press because of the demographics. The number of single-person households is now over 30%, so people like me, living alone with no kids, will subsidize families. Do I resent helping my neighbour's families? No.

Is such a stimulus package fair and effective? Gakushuin University academic Suzuki Wataru presents some compelling cons. A biggie is that the blanket premium dings the young and unmarried, potential parents. They're paying more before the ring goes on the finger.

What do you think about the stimulus package and response to the crashing birth rate?