Hungary is grappling with a declining birthrate, and its government, under Prime Minister Viktor Orban, has implemented a radical plan to address this issue. The core of the plan is a lifelong personal income tax exemption for mothers of two or more children. This policy, coupled with other existing incentives like cash handouts, tax breaks, and cheap loans, aims to encourage higher birthrates.
While the birthrate saw an initial increase after the implementation of these policies, it has since plateaued. Critics argue that the policy primarily benefits ethnic-Hungarian married mothers, leaving out single parents, unmarried couples, and marginalized communities like Roma families. Concerns are also raised about the potential infringement on women's rights, suggesting the policy forces women into a situation of dependency tied to their childbearing.
Despite the criticisms, some families have benefited significantly from the program, enabling them to afford better living conditions and provide their children with improved opportunities. However, these benefits appear largely unavailable to many Roma families.
The declining birthrate is not unique to Hungary. Many Western nations are experiencing similar challenges, leading to concerns about future workforce shortages and economic sustainability. The article highlights the situation in Italy and the UK, both of which are facing declining birthrates. Prominent figures, such as Elon Musk, have expressed alarm over global population decline, further emphasizing the urgency of the issue.
Hungary's policy highlights the complex challenges faced by nations grappling with declining birthrates. While the incentives provided by the government have shown some success in specific segments of society, they also raise important ethical questions about women's rights and social equity. The effectiveness of this approach, and whether other countries should adopt similar measures, remain open to debate.