Research Institute of Economy, Trade and Industry's latest analysis reveals that active utilization and expansion of the public fund receipt account registration system is essential to enhance the effectiveness of government universal benefit policies. Faculty Fellow Motohiro Sato sharply criticizes the Liberal Democratic Party's proposed universal payment of 20,000 yen per person (with an additional 20,000 yen for children and tax-exempt households) ahead of the July House of Councillors election, stating it cannot provide targeted support to households truly struggling with inflation and is merely election-oriented handouts with poor economic effects.
As benefits have become routine for COVID-19 countermeasures and inflation relief, local governments responsible for payment administration have voiced strong complaints: "Local governments are not subcontractors of the national government. Why doesn't the government create a system for smooth payments?" Traditionally, the government has lacked direct contact with workers through the income tax withholding system, relying on indirect mechanisms through institutions - employment adjustment subsidies through employers and child allowances through local governments. However, given chronic labor shortages in municipalities due to population decline, diversification and increased mobility of employment, and the technical feasibility of individual online applications, it is time to shift the government's contact point from "institutions" to "individuals."
As a groundbreaking solution to these challenges, attention focuses on the public fund receipt account registration system linked to My Number cards, created during the COVID pandemic. According to the Digital Agency, registrations have reached approximately 60% of cumulative My Number card issuances, and specific public benefits are disbursed through these accounts "in cases of disasters or infectious diseases that may have severe impacts on people's lives and the national economy." This system enables push-type support without applications and can be utilized for emergency benefits, pensions, child allowances, and income tax refunds.
The Research Institute of Economy, Trade and Industry strongly recommends that, considering the use of public fund receipt accounts for swift payments in the current benefit program, the government should make public fund receipt account registration a requirement for benefits, establish a system enabling direct government payments without local government intermediation, and advance the construction of effective infrastructure to provide a safety net for households.