The Chinese government has taken a unique step to increase the declining birth rate of the country and strengthen the economy. The government has decided that the parents of children born after 1 January 2025 will be given financial assistance of Rs 1.2 lakh for every child. This amount will be available till the child is three years old, that is, about 42 thousand rupees every year. The goal of this scheme is to increase the workforce of the country, because China’s economy is largely on the work force.
According to Bloomberg’s report, this step has been taken because China’s population is decreasing for the third consecutive year. Last year, only 95.4 lakh children were born, which are about half of the time of the end of the One-Child Policy in 2016.
China had abolished the One-Child Policy about a decade ago, but despite this, people were not motivated to have more children. The wedding rate has also reached the lowest level in the last 50 years, due to which there is a possibility of being less born in the coming years. Local governments are already taking several steps to deal with this problem. For example, 50,000 yuan (about 6 lakh rupees) for another child in Hohot city of Inner Mongolia and 1,00,000 yuan (about Rs 12 lakh) for the third child are being provided. Due to the low income level in these areas, this amount is very important for the people, as South China Morning Post (SCMP) said.
Expert opinion
But experts believe that only money will not solve this problem completely. Demographer Huang Venzheng studied Tianmen’s plan and found that the city spent 0.87% of its economy on birth payment, but the fertility rate increased by only 0.1%. They say that if the population continues to decrease rapidly, then companies will hesitate to invest, which will reduce jobs and increase difficulties in the labor market. Huang compared the declining population of China to an empty train: If half the passengers get off, the rest may feel relaxed, but if people become very low, then the train system can stop running. They estimate that China will have to spend 30 to 50 times more to bring the fertility rate to 2.1 children per woman.
Financial help is not enough
The Chinese government is also understanding that only financial help is not enough. Therefore, there is a plan to give vouchers for marriage and care of children in Zhejiang province. The National Health Commission is also preparing a comprehensive plan for families. Also, the government is trying to stop long work hours. Big companies like DJI have promised to reduce overtime. A survey of 1,44,000 parents found that only 15% of the people wanted more children, but the figure increased by 8.5% after getting information about the subsidy of 1,000 yuan.