24.07.08

For the past three years, the budget for maternity capital (federal subsidies for mothers of more than one child) has not been fully used. Prime Minister Vladimir Putin is ready to rectify this. Every year the budget for maternity capital is indexed according to rising prices. “If inflation continues to rise like it has been, then we’ll continue to increase maternity capital,” Putin announced to the Upper Chamber of Parliament on July 16. “Next year it might be 300,000 rubles.” Part of the money will be directed from the federal budget to regional budgets.

The maternity capital program began last year as part of efforts to increase Russia's the birthrate. A general “baby boom” has not yet occurred, but the birthrate in several regions has increased. The death rate, however, is still higher than the birthrate. According to the Federal State Statistics Service, Russia’s population has decreased by 90,000 people from January to April of this year.

Women cannot receive maternity capital until children are at least three years old. This means that the new budget will take effect in 2010. The money can only be spent on improving the living situation of the family or on the child’s education. The money can also be transfered to the mother’s pension account.

In related news, Putin did not support a measure to guarantee mothers 10 square meters of living space.

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