Japan's prime minister wants to use revenue from the increased consumption tax to provide tuition-free preschool and higher education. Shinzo Abe says the move would be part of his drive to invest more in human resource development.

The consumption tax will be raised from 8 percent to 10 percent in October 2019.

During a speech at the New York Stock Exchange on Wednesday, Abe said it's time to tackle the biggest challenge for Japan's economy -- the shrinking and aging population.

He said he will address this issue by carrying out reforms to improve productivity and human resource development.

He announced a plan to reform social security that benefits not only the elderly but all generations.

He also called for improving childcare and nursing care services and making preschool education tuition-free. This would include tuition-free higher education for children from low-income households.

Abe said reforming human resource development will require substantial financial resources. He said he is determined to meet this challenge for the future of Japan.