The government has provided subsidies for giving birth! The General Office of the Communist Party of China Central Committee and the General Office of the State Council recently issued the "Implementation Plan for the Childcare Subsidy System" (hereinafter referred to as the "Plan"), which has attracted widespread attention from society. The Plan specifies that from January 1, 2025, subsidies will be provided to infants and young children under the age of 3 who meet the legal and regulatory requirements for childbirth, until they reach the age of 3. The childcare subsidy is issued annually, and the current national basic standard is 3600 yuan per child per year. Among them, for infants and young children born before January 1, 2025 and under the age of 3, subsidies will be calculated based on the number of months they should receive subsidies. Child rearing subsidies issued in accordance with the regulations of the child rearing subsidy system are exempt from personal income tax. When identifying assistance recipients such as those receiving the minimum living allowance and those in extreme poverty, childcare subsidies are not included in family or personal income. The implementation of the childcare subsidy system is a major livelihood policy of the Party Central Committee. What is the "value" of childcare subsidies? What is the deeper meaning behind parental subsidies? Recently, experts have provided interpretations. Why distribute cash subsidies? The Third Plenum of the 20th Central Committee of the Communist Party of China proposed the establishment of a maternity subsidy system, and this year's Government Work Report clearly stated the distribution of childcare subsidies. Since 2021, more than 20 provinces across the country have explored and implemented policies related to childcare subsidies at different levels, which have to some extent reduced the economic burden of local families raising young children and have been welcomed by the public, achieving positive results. Zhu Kun, a researcher at the Chinese Academy of Fiscal Sciences, believes that the childcare subsidy is the first universal cash subsidy issued to residents in China, and it is also a concrete practice of implementing people-oriented and investing in people, fully reflecting the high importance that the Party Central Committee attaches to ensuring and improving people's livelihoods in development. The childcare subsidy system is a nationwide and inclusive economic subsidy system, characterized by low standard starting, wide coverage, sustainable development, and dynamic adjustment. ”He Dan, director of the China Population and Development Research Center, said that from the perspective of coverage, the subsidy targets all groups of children under the age of 3 who have given birth in accordance with laws and regulations. It is estimated that over 20 million infants and young children in China can receive cash subsidies every year. As a basic institutional arrangement for supporting childbirth, childcare subsidies serve both as a guarantee for childbirth and an incentive guide. He Dan believes that the national childcare subsidy system has achieved four "basic unifications", namely "unified objects, unified standards, unified forms, and unified processes". In terms of subsidy recipients, both the first, second, and third children can receive it, breaking through the limitations of previous subsidy policies focusing on families with two or three children in various regions. Families with one child are included in the support system, achieving comprehensive coverage of family support under the three child birth policy; In terms of subsidy standards, the first, second, and third children will receive the same standard, eliminating the difference in treatment between children; The subsidy forms are all cash subsidies, and the operation process is to apply through a unified parenting subsidy information management system. Distributing childcare subsidies is a new reform measure aimed at increasing income and reducing burden. ”Zhang Benbo, a researcher at the Institute of Social Development of the National Development and Reform Commission, said that currently, China's economic support for parenting families is mainly focused on reducing their burden. Granting childcare subsidies is a policy focus on directly increasing the disposable income of families raising children. This policy not only enhances the consumption power of families, but also gives them greater autonomy in consumption, allowing them to spend their money where they need it most. Providing childcare subsidies to all families with infants and young children under the age of 3 directly increases their disposable income, enhances their sense of achievement and happiness, and is a policy that promotes family welfare and social well-being, achieving a win-win situation for all parties. Mao Zhuoyan, a professor at the Population and Development Research Center of Capital University of Economics and Business, believes that the establishment of the child care subsidy system marks a new stage of China's population policy oriented by "guidance" and "incentive". As an important means to directly alleviate the cost of family childcare, the childcare subsidy system is not only related to family welfare, but also to the strategic overall situation of long-term balanced development of the national population. Professor Jiang Quanbao from the School of Labor Economics at Capital University of Economics and Business believes that the introduction of a childcare subsidy system by the government can ensure policy consistency and fairness. On this basis, local governments should supplement and introduce differentiated subsidy policies within their financial capacity based on the local economic development level and population development characteristics. Through the coordinated efforts of the central and local governments, a multi-level and three-dimensional fertility support policy can be formed, which can not only improve the accuracy of childcare subsidies, but also fully leverage local advantages. Can it reduce the burden of parenting? The Plan points out that we must adhere to improving people's livelihoods, benefiting the people, and effectively reducing the cost of family childbirth and upbringing; Adhere to overall coordination, ensure fairness, and align with current livelihood policies to ensure that eligible infants and young children receive equal subsidies. Raising a child in modern society requires a significant investment of funds, from maternity related expenses to various expenses such as infant formula, diapers, and education after the child's birth, each of which puts a lot of pressure on the family. Parenting subsidies have to some extent reduced the economic burden on families, provided support for parents to raise children, and created better material conditions for children's growth. ”Yang Fan, a professor of the School of Population and Health of Renmin University of China, said that the child care subsidy reflects the state's attitude of respecting and supporting childbearing, and reflects the importance and support of family childcare. The country has fully implemented the childcare subsidy system, with wider coverage, greater support, and stronger policy sustainability, allowing more families with children to enjoy the benefits of childbirth and upbringing. Especially for low-income families, such support is even more important. Huang Wei, associate professor at the National Development Research Institute of Peking University, believes that the introduction of a child rearing subsidy system by the government aims to reduce the burden of family rearing through economic support and enhance fertility willingness. The current childcare subsidy system mainly targets families with infants and young children aged 0-3, reflecting the precision and pertinence of the policy. This design conforms to international practices, as the age range of 0-3 is a critical stage for children's growth. The World Bank's research shows that low - and middle-income families are more sensitive to economic subsidies and the effects of subsidies are more significant. Parenting subsidies can directly alleviate the economic pressure on families. ”Mao Zhuoyan said that although cash subsidies cannot fully cover the cost of childcare, they can play a bottom line role in critical stages and alleviate the anxiety of young families in raising children. Of course, relying solely on economic subsidies is difficult to fundamentally reverse the trend of childbirth. It must be promoted in conjunction with childcare services, family support, and gender friendly systems to form a systematic support system. Research shows that high parenting costs are the main factor inhibiting the willingness and behavior of Chinese families to have children. Nearly one-third of childbearing age families are at risk of insufficient parenting resources, with a particularly prominent shortage of economic resources. Song Jian, a professor at the School of Population and Health of Renmin University of China, believes that although there are differences in the promotion of child care subsidies to different families' fertility at the micro level, from the macro level, the implementation of the child care subsidy system will help to reduce the family's economic burden, reduce the pressure on upbringing, and improve the overall income of individuals, families and society by investing in children. Can we increase the willingness to have children? The Plan proposes to establish and implement a childcare subsidy system to create a family friendly social atmosphere. In recent years, China's aging population has accelerated and the fertility rate has continued to decline. The implementation of the childcare subsidy system is a positive response to reducing the burden of raising children for the masses, demonstrating the value orientation of fertility friendliness, and reflecting the determination of the country to build a fertility friendly society. Song Jian said that the low fertility rate in China is mainly influenced by economic and social factors, and the high cost of childbirth, nurturing, and education is one of the important reasons. The family's decision on childbirth is, to some extent, a rational balance between the cost and utility of childbirth. When the net income from childbirth is too low, it often leads to a low willingness to have children. The implementation of childcare subsidies as an economic incentive measure will help increase family fertility intentions and promote the achievement of moderate fertility levels. Mao Zhuoyan believes that the childcare subsidy system is not a "universal key", but it plays an irreplaceable role in alleviating the practical difficulties of childbearing age families, stabilizing fertility expectations, and improving population structure. Establishing a fair, inclusive, and sustainable childcare subsidy system is an important step towards a fertility friendly society. She Yu, a researcher at the Social and Cultural Development Research Department of the Development Research Center of the State Council, said that the impact of fertility support policies on fertility levels is not immediate and usually takes some time to become apparent. With the initial formation and continuous improvement of the basic framework of China's fertility support policy system, by playing a good policy "combination punch", it is certain to create a more friendly fertility environment, maximize the release of fertility potential, and achieve long-term balanced population development. Huang Wei believes that childcare subsidies, as an incentive measure, can alleviate the economic pressure on families to a certain extent, but in order to fundamentally enhance the willingness to have children, they need to be included in the entire life cycle of the birth support system. Parenting is a long-term process that involves multiple stages from pregnancy to old age. The implementation of the childcare subsidy system has laid an important foundation for the full life cycle fertility support system. (New Society)