Japan to Spend 1.5 T. Yen A Year on Free Education Program

December 28, 2018

Tokyo--The Japanese government said Friday that it expects to annually spend 1,536.4 billion yen to cover costs for its free-of-charge preschool and tertiary education program.

The estimate was presented to a meeting of related ministers on the day, where the government adopted a policy for drawing up details of the program. It plans to submit related legislation during next year's ordinary session of the Diet, the country's parliament.

Prime Minister Shinzo Abe places high priority on the free-of-charge education program, which will be financed by the consumption tax hike to 10 pct from the current 8 pct, scheduled for October 2019.

"We aim to revamp our country's social security system to an all-generation type that allows both young and elderly people to feel secure," Abe told the meeting. "Making education free of charge is a key first step toward this goal."

Free-of-charge education and nursing for preschoolers are expected to start in October, with annual costs put at 776.4 billion yen.

For children aged 3 to 5, the government will fully cover fees at certified nurseries and kindergartens in principle, regardless of the levels of their parents' incomes, and up to 37,000 yen per month in fees at uncertified facilities where necessary for double-career and other families.

With nursery fees usually higher for children from higher-earning families, about half of the public money for the coverage of fees at certified facilities will go to families with annual incomes of over 6.4 million yen, according to the government.

Meanwhile, public coverage of nursery fees for two-year-old and younger children will be granted only to low-income families exempted from residential tax payments.

Public support for residential tax-exempted families with students at universities and other higher education institutions will start in fiscal 2020, seen costing the government 760 billion yen a year.

The government will annually cover up to about 280,000 yen in admission fees and some 540,000 yen in tuition fees at national and other public universities, and up to about 260,000 yen and 700,000 yen in these fees at private universities.

In addition, grant-type public scholarships will be offered, with the amount set at about 350,000 yen and 460,000 yen respectively for students at public and private universities who live with their parents, and at about 800,000 yen and 910,000 yen for students living separately from their parents. Jiji Press