The Chinese government, in response to the low birth rate in the country in recent years, has implemented the "mother capital" program to increase the birth rate. This was reported by China's "Xinhua" publication.
It is noted that the program is planned to cover up to 20 million families annually. The government has announced that it will provide 3,600 yuan (approximately 500 US dollars) per year for children under the age of 3. These payments are intended for families with children born between 2022 and 2024.
"These payments will not have a significant short-term impact on the birth rate or consumption volume. However, this policy marks an important turning point in direct financial support to the population and could lay the foundation for increasing budget transfers in the future," says economist Zichun Huang.
For reference, in order to control excessive population growth, the Chinese government implemented the "one child per family" policy from 1979 to 2015. Families in rural areas who had a second child were deprived of social benefits.
