The administration said Tuesday it wants municipalities to shoulder ¥980 billion worth of monthly stipends to families with children in fiscal 2012, nearly double the previous year's burden, in a move certain to draw strong opposition from prefectural governors and other local-level bodies.
The central government has already been telling municipalities that an increase in local tax revenues from an elimination of a tax break for dependants, estimated at ¥505 billion for fiscal 2012 if implemented, can cover the raised burden.
To win the municipalities' approval, Health, Labor and Welfare Minister Yoko Komiyama proposed at a news conference lowering the local burden ratio to 1-to-1.