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The Coordinating Council was established in September 2012 to oversee the interaction of government agencies at all levels, as well as public and research organisations in implementing the National Children's Strategy. The Council develops proposals to the President on priority aspects of the state policy for children. The Council is headed by Federation Council Speaker Valentina Matviyenko.

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President of Russia Vladimir Putin: Good afternoon, colleagues.

Today we will discuss the implementation of the National Children’s Strategy. It was designed for five years, and much has been done over this period to attain the goals and resolve the issues outlined in the strategy.

It is very good that all regional authorities, public organisations, as well as the expert and academic community contributed to this work. The strategy has acquired a truly national character, and it could not have been otherwise because the issue concerns children, who are the future of Russia.

Today we must adopt a package of measures that will allow us to stabilise the numerical strength of the population and prevent its decrease in the forthcoming decade. We must work actively and persistently in all areas to both reduce the death rate and encourage the birth rate. In fact, we must reset our demographic policy.

Other speakers will undoubtedly provide a detailed analysis of the Council’s achievements. I can say that the results of its operation are mostly positive. They confirm the importance of the Federation Council’s initiative and the tasks that have been fulfilled.

Of course, we must continue working on this. We have not yet achieved everything we need to, but I will speak about this later. As you know, a Decade of Childhood has been declared this year under an executive order. I hope that the Government , while implementing this order, will correlate it with the tasks of the National Children’s Strategy and that the Federation Council will continue to oversee these issues.

I would like to point out the priority importance of such goals as strengthening the family and creating equal opportunities for the comprehensive development of all children.

You know that since the beginning of the 2000s we have been closely and consistently dealing with demographic development issues. Owing to substantial and effective decisions, we have been steadily resolving tasks in this area.

To increase the birth rate, I propose introducing a number of new family support measures starting as early as January 2018. The first is to introduce a monthly allowance to be paid from the first child’s birth until the child is 18 months old. The allowance will be based on the child subsistence expenses in a respective region.

One of the measures we introduced and which is still implemented is maternity capital. It played a special role. Much has been achieved in this respect and the birth rate has started growing. Having two children in a family has become a stable trend. The infant death rate has decreased, primarily owing to the established system of perinatal centres. We have managed to achieve natural population growth, which nobody hoped for, but it has taken place.

Despite this, the demographic situation is declining again, mostly for objective reasons. This trend was predictable and it is linked with the consequences of the previous, deep and overlapping demographical declines. I am referring to the decline during the Great Patriotic War in 1943–1944 and about the same drop in the middle of the 1990s due to enormous problems that emerged in the economy and a de facto collapse in the social sphere.

Today we must adopt a package of measures that will allow us to stabilise the numerical strength of the population and prevent its decrease in the forthcoming decade. We must work actively and persistently in all areas to both reduce the death rate and encourage the birth rate. In fact, we must reset our demographic policy.

As for the birth rate, we must primarily support families with many children and families with modest incomes and create additional incentives for the birth of the second and third child.

Second. I propose extending the maternity capital programme through December 31, 2021. Moreover, I am proposing additional ways in which the money can be used.

We should also pay special attention to young families. As a rule, they have small incomes because these are young people who are either still studying or have just started working. Usually their incomes are very modest and this often prevents them from having their first child.

I must say that we spent much time discussing various measures. Now it is time to make a decision and announce what new measures we are suggesting.

To increase the birth rate, I propose introducing a number of new family support measures starting as early as January 2018.

The first is to introduce a monthly allowance to be paid from the first child’s birth until the child is 18 months old. The allowance will be based on the child subsistence expenses in a respective region. Depending on the region, it will amount to an average of 10,523 rubles in 2018, 10,836 rubles in 2019 and 11,143 rubles in 2020. The allowance will be a targeted measure subject to the family’s income. I believe it would be fair to primarily support those who are really in need. As I said, the payments will be based on the child subsistence expenses set in every region for the second quarter of the year prior to the year of application for the allowance. It will be provided to families with an average income not exceeding 150 percent of the able-bodied population’s subsistence level also set by the respective region for the second quarter of the preceding year. The cost of implementing this measure over three years will amount to 144.5 billion rubles.

Thirdly, as you know, a decision to increase the number of regions receiving federal budget co-financing for paying benefits to families raising a third child has already been announced. In all, 60 Russian regions will be able to obtain support as of January 1, 2018. Those regions where the average woman has two children or fewer will be able to obtain support.

Second. It has been 11 years since maternity capital was first introduced. Parents and families count on this money, without doubt. It has become a very good motivation to have a second child. You know that the maternity capital programme is to wind down at the end of the next year. I constantly get the question – and, I think, many of you do too – about what happens next. I propose extending the maternity capital programme through December 31, 2021. Moreover, I am proposing additional ways in which the money can be used. Specifically, maternity capital may be also paid as a monthly allowance to families who are in great need. The same targeted approach will apply as to the first-child allowance. The payments will also be based on the child subsistence level in the respective region and will be paid to families with incomes equalling or under 150% of the able-bodied population’s subsistence level, until the child reaches 18 months.

In addition, it will now be possible to use maternity capital to pay for preschool education services after the child turns two months old. To be more exact, it can be used for child care and supervision. I know that this measure is in very high demand. For example, a mother can then continue to work or study after the baby is born.

Fourthly. I suggest launching a special mortgage programme. Families that have a second or third child after January 1, 2018 will be eligible. When buying housing on the primary market or refinancing mortgages taken out earlier, families will be able to rely on state subsidies on annual interest rates above six percent.

Thirdly, as you know, a decision to increase the number of regions receiving federal budget co-financing for paying benefits to families raising a third child has already been announced. These benefits have been paid since 2013. Children under three years old are eligible for such benefits. The legislation of Russian regions stipulates criteria to identify families in need and the procedure for issuing payments.

I would like to remind you that federal budget co-financing is provided to regions with an unfavourable demographic situation and whose total birth coefficient falls short of nationwide levels. This year, 50 Russian regions took advantage of these co-financing terms.

In all, 60 Russian regions will be able to obtain support as of January 1, 2018. Those regions where the average woman has two children or fewer will be able to obtain support. In effect, the regional birth rate coefficient increases to two. As I have already said, this change in coefficient levels allows 60 regions to obtain federal assistance to pay benefits to families raising a third child.

Fourthly, the housing issue is seen as very important, especially by young families and all families with children. I suggest launching a special mortgage programme. Families that have a second or third child after January 1, 2018 will be eligible.

The fifth point. We have practically resolved the problem with places in kindergartens. Now we must eliminate waiting lists at nurseries – for toddlers from two months to three years of age.

When buying housing on the primary market or refinancing mortgages taken out earlier, families will be able to rely on state subsidies on annual interest rates above six percent. Let me explain this. For instance, according to the Bank of Russia, the weighted mortgage average amounts to 10.05 percent. In other words, in this case the state pays more than four percent of the interest rate. According to the Ministry of Construction, this programme may cover over 500,000 families in the next five years.

I will go into more detail. The mortgage-lending programme will be fixed term. The interest rate over six percent will be subsidised for the birth of a second child for three years since the loan was issued; and five years since the loan was issued for a third child. There may be questions. Suppose the programme is coming to a close but a baby has just been born. What happens in this case? If a third baby is born within the term of the subsidy but no later than December 31, 2022, this term will be extended for another five years from the end of the term of the subsidy for the birth of the second child. If a third baby is born after the term of subsidy for the second child but no later than December 31, 2022, subsidising is resumed starting with the birth of the third baby.

The fifth point. We have practically resolved the problem with places in kindergartens. Now we must eliminate waiting lists at nurseries – for toddlers from two months to three years of age. We should do this as quickly as we can. Parents of over 326,000 toddlers have already applied for places in nurseries. We have planned to create the same number of nursery places in the next two years.

My sixth point. It is important to work more thoroughly and consistently to improve access to child medical services and, certainly, their quality. I have already said many times that in the past year there has been a breakthrough in building regional perinatal centres. However, conditions in the majority of children’s outpatient clinics and their equipment leave much to be desired. There are issues with waiting times and doctor appointments. This state of affairs also contributes to keeping families from having children. In any case, this situation simply must be fixed.

The estimated cost of major renovations and additional equipment for children’s clinics is over 50 billion rubles. Apparently, the regions do not have the resources for performing these works despite the aid they have received from the Government lately. Therefore, in the next three years, the federal budget will be providing a large share of this funding, 10 billion a year.

My sixth point. It is important to work more thoroughly and consistently to improve access to child medical services and, certainly, their quality.

The Government and the regional authorities need to promptly develop a detailed schedule for the renovation of children’s clinics, including outpatient units in hospitals, and to approve the co-funding terms and the clinic selection procedure based on available design specifications and cost estimates and, primarily, due to the acuteness of the issue.

I believe these measures will have a positive outcome. Once again, we are talking about this country’s future, about Russians having as many children as possible, about a higher quality of life and better medical care.

This is what I wanted to say in the beginning. Thank you very much.

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