UPDATE: Putin promises more help to families with many children

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MOSCOW, Feb 20 (PRIME) -- Russian President Vladimir Putin on Wednesday suggested raising social benefits to families with many children – from cutting their tax and mortgage burden to giving them land plots as a way of fighting poverty and ordered improvement of people’s lives already this year.

“The solution of demographic problems, the growth of life expectancy, reduction of the death rate are directly related to poverty reduction. Let me remind you that in 2000, more than 40 million people were behind the poverty line, now about 19 million, but this is too many as well,” he said. "They must feel that their circumstances have improved soon, this year.”

He said that mortgages for families with a lot of children must be reduced for the entire period, whereas the current 6% rate stands only for the first three–five years of mortgage, and later rises to the market level.

“The tax burden on the family must be reduced -- the principle must be light, the more kids, the less taxes,” he told the Federal Assembly, both houses of parliament.

Land plots of a traditional size of 6 ares will be fully exempt from taxes for such families, and this incentive will have a federal status. The government will compensate 450,000 rubles of mortgages to the families with three and more children, he said.

The groups of families with children qualifying for financial aid must be extended to those who fail to earn at least two minimum incomes per capita in a family.

The payments to families with children with severest disabilities will rise to 10,000 rubles from July 1 from 5,500 rubles. “I understand, of course, that this is not much as well, nevertheless, this measure will provide additional support to the families where the children need care.”

Putin reiterated that Russia needs grace periods for mortgage payment in case of a job loss or a grave disease, and that the government must organize such support without hurting banks.

The land tax must not rise above 10% per year, he said.

Putin said that healthcare must become accessible everywhere by 2020. “I am aware that now the level of accessibility of healthcare it is growing on the one hand, indeed growing, but it does not suit many people.”

Russia will spend 1 trillion rubles on oncological diseases in six years.

The president separately asked the central bank and police to sort out the issues on the microfinancing market, to protect people from unscrupulous business practices.

Putin asked the State Duma to pass a draft setting quotas on hazardous emissions in the spring session. He said that the total emissions in Russia must fall by at least 25% in six years.

(66.2022 rubles – U.S. $1)

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