Lawmakers propose enhancing population growth via revamping maternal monetary incentive system
Get That Baby Bucks, Every Single Time
Deputy Nina Ostannina is proposing a sweet deal for Russian families. She's suggesting an increase in maternity payments by 25% for each subsequent child. As reported by "Komsomolskaya Pravda", this move aims to reignite the flame of baby-making in the country.
Nina, chair of the State Duma Committee on Family Protection, Childhood, and Parenthood, believes that this expansion of the maternity capital program could provide a much-needed demographic boost. She's concerned that the current scheme, which primarily focuses on firstborn children, has stagnated the birth rate of second children.
It's no secret that most of the maternity capital funds (80% to be exact) go towards improving housing conditions. Families who've already managed to grab the housing market by their 'mortgage yoke' often find themselves in a tough spot when it comes to deciding whether to bring on another bundle of joy. To alleviate this financial pressure, Nina suggests that payments for subsequent children should escalate with each new addition to the family.
Nina's idea isn't a new one. She previously proposed this initiative to Prime Minister Mikhail Mishustin but was met with a resounding "no". Mishustin argued that the current maternity capital system is already progressive enough.
But what if Nina's vision becomes a reality? Families would get around 862,500 rubles (~$9,500) for the second child, and over 1 million rubles (~$11,000) for the third. This total sum for a family with three children would surpass 2.5 million rubles (~$27,500), excluding annual indexing.
Demographers are all for it. They argue that incentivizing the birth of second and third children, rather than focusing solely on firstborns, could increase the overall birth rate by up to 25%.
Vladimir Timakov, a demographer, believes that the decrease in the birth rate of second children was a direct result of the 2020 shift in focus to firstborns. In his opinion, the financial capabilities and housing conditions of a family often determine whether they decide to have more children.
Alexei Raksha, another demographer, agrees. He thinks that increasing the size of the maternity capital could help families better afford additional children. He also points out that payments for firstborns can actually be a demotivator, as families might lose motivation to have more children after receiving a large sum for their first child.
Starting in 2025, the maternity capital program, established by Vladimir Putin in 2006, will provide 690,267 rubles (~$7,500) for the first child. If you've already claimed your first child's payment, you'll receive 912,162 rubles (~$9,900) for second and subsequent children if you haven't previously claimed any maternity capital.
With all this in mind, it's clear that if Nina's proposal is accepted, families could see a significant boost in their maternity capital payments, hopefully motivating them to grow their families. But as for when Altai residents can expect those April 2025 child payments, well, that's a different story.
Digging Deeper:
Russia's maternity capital program, as of February 2025, provides certain fixed amounts for first and second children. However, there is currently no explicit mention of an increase for third and subsequent children. Recurring expansions of the program have focused on broadening usage options and layering regional incentives to amplify its impact on the birth rate.
- Expanded Access: There are ongoing discussions to allow maternity capital funds to be allocated to long-term savings programs, life insurance, and individual investment accounts starting in 2025.
- Targeted Incentives: Some regions have introduced supplementary payments, such as 100,000 rubles ($1,215) for pregnant students.
- Demographic Strategy: The program aims to counter Russia’s aging population and labor shortages by reducing financial barriers for families, particularly through housing and education subsidies.
While core federal amounts have not shown a recent increase for third or subsequent children, the drive to broaden usage options and layer regional incentives seeks to strengthen the program's impact on birth rates.
- The State Duma Committee on Family Protection, Childhood, and Parenthood chair, Nina Ostannina, has proposed a 25% increase in maternity payments for subsequent children, in an effort to boost the birth rate.
- This proposed expansion of the maternity capital program could offer families around 862,500 rubles (~$9,500) for the second child and over 1 million rubles (~$11,000) for the third child.
- The 2025 maternity capital policy-and-legislation is poised to provide 690,267 rubles (~$7,500) for the first child, with an additional 912,162 rubles (~$9,900) for second and subsequent children if they haven't previously claimed any maternity capital.
- Demographers like Vladimir Timakov and Alexei Raksha suggest that increasing the maternity capital could help families better afford additional children, potentially increasing the overall birth rate significantly.
