The Development Path and Plan Design of China's Universal Child Allowance System

To encourage childbirth, most developed Western countries have established universal child allowance systems to help families share the cost of raising children. Japan, South Korea, and Singapore are all grappling with the issue of declining birth rates, yet their child allowance systems differ significantly in terms of coverage and benefit levels. Russia's pronatalist child allowance system primarily targets low-income families and is notably characterized by its poverty reduction function. In recent years, some regions in China have introduced childbirth subsidy policies to promote fertility. However, these policies vary greatly in their disbursement methods and benefit levels, with fiscal expenditures accounting for a minimal share of local budgets. Based on an analysis of international child allowance systems and domestic childbirth subsidy policies, and adhering to the principles of "gradual progress" and "central government support with local government supplementation," this paper proposes a nationallevel universal child allowance plan and implementation pathway. Additionally, it evaluates the fiscal costs and sustainability of the proposed plan.
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