The government will consider whether to finance the nation's basic pension plan entirely with tax revenues, in contrast with the current system of supporting the public scheme with pension premiums and tax revenues, Economy Minister Hiroko Ota said Oct. 23.

"We have decided to raise the ratio of the state burden in the basic pension plan from the current one-third to half (by fiscal 2009). We will discuss whether to keep that condition or further increase the ratio to 100 percent," Ota said at a news conference.

The opposition Democratic Party of Japan has called on the government to finance the basic pension plan entirely with tax revenues.

At present, private companies shoulder half the burden of pension premium payments for their employees.