Andhra promises cash incentives for third, fourth child: CM Naidu says population is ageing

Andhra CM Naidu promises cash incentives for third, fourth child

Andhra Pradesh chief minister N Chandrababu Naidu on Saturday announced incentives of ₹30,000 for the birth of a third child and ₹40,000 for a fourth, as part of efforts to reverse the state's declining population trend.

Andhra Pradesh CM N Chandrababu Naidu's latest announcement follows an earlier proposal to provide a ₹25,000 incentive for the birth of a second child. (ANI File Photo)

Although he had once advocated population control measures, the CM said the time had now come for society to work together to increase the birth rate.

"I have made a new decision. We will provide ₹30,000 immediately after the birth of a third child and ₹40,000 for a fourth child. Isn't this the right decision?" Naidu said to public cheers on the sidelines of a cleanliness drive programme.

Addressing the public meeting at Narsannapeta in Srikakulam district, Naidu said the government had taken the decision and would announce further details within a month.

Naidu's latest announcement follows an earlier proposal to provide a ₹25,000 incentive for the birth of a second child. On March 5, the CM informed the assembly that the state government was considering an incentive of ₹25,000 for couples having a second child.

Health minister Satya Kumar Yadav later told news agency PTI that the government had decided to extend the incentives to families having a third child and beyond.

Why the incentive?

According to Naidu, some couples are opting to have only one child as their incomes rise, while others choose to have a second child only if their firstborn is not a boy.

As a result, he warned that the state's population growth rate is declining and stressed the importance of maintaining the replacement-level Total Fertility Rate (TFR) of 2.1.

Naidu noted that a population remains stable only when the average fertility rate is 2.1 children per woman. He claimed that declining populations and ageing societies in several countries have negatively affected their economies.

Rejecting the notion that children are a burden, Naidu argued that they are an asset.