Birth rates across developed nations are rapidly declining. One country is combating this problem by making it easier for young couples to start families. Since 2010, the Hungarian government has been offering a paid incentive to improve the declining birth rate. Women may receive 10 million forints ($33,000) as a loan upon marriage. Couples are expected to pay off the loan within five years; however, interest on the loan will be suspended if the couple produces a child within the five-year period. If the couple produces three children, the entirety of the debt will be forgiven. Additionally, the Hungarian government announced that women who produce at least four children will no longer need to pay income tax. Couples will also receive up to $40,000 in an interest-free loan to assist in home buying. Childcare services are also offered complimentary.
“To support young adults to be able to have as many children as they wish to have at the moment when they wish to have these children so to give them the real freedom of choice, the opportunity to choose in favor of life as many times as they wish to,” Minister for Families Katalin Novak stated. As a result of these policies, the marriage rate is up 83% and divorce has reached a 60-year low. More couples are having babies, as the financial constraints of raising a new life are supported by the government.
