Child Daycare Service Provision and Local Public Finance

Abstract

　Japanese "The Comprehensive Support System for Children and Child-rearing" began in 2015. The new system uses the consumption tax revenue as a financial source. For many years, kindergartens and child daycare services have been distinguished. These will be integrated into one system. This is Japanese Early Childhood Education and Care (ECEC) policy. Local governments have been committed to the waiting children of child daycare, but it is still important social issue. Japan is an aging society and a declining birthrate society. This waiting issue is specific to urban areas.

　There are several proposals for solving this issue. One is to promote private provider entry. The other is to introduce market prices into service fees. Private company has already entered from 2000 as several forms. The adjustment of supply and demand of child daycare by market price is inadequate. Child daycare is not only for the support to parents, but for the development of the next generation. Now central government has promoted Work-Life-Balance policy. This aims to realize the sustainable society by whole nation labor participation. Once the waiting issue is solved, the next should be ECEC free of charge.