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Hungary's Subsidy for Marriages Off to a Good Start


From Reuters:

NOVEMBER 26, 2019 / 7:31 AM / UPDATED 18 HOURS AGO
Hungary government scheme sparks marriage boom. Will babies follow?

BUDAPEST (Reuters) – A new Hungarian government scheme to promote marriage and childbirth with subsidized loans has already helped produce a boom in weddings, though it is still too early to say whether more babies will follow.

Nationalist Prime Minister Viktor Orban has made it a priority to persuade more Hungarians to marry and have children to reverse a population decline. He has introduced a number of tax benefits and other programmes to favor families.

A big new scheme this year offers couples that marry before the bride’s 41st birthday subsidized loans of up to 10 million forints ($33,000). A third of the loan will be forgiven if they go on to have two children, and the entire debt wiped out if they have three.

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One obvious problem with fixed amount subsidies for children is that they tend to encourage people whose reaction to $11,000 per child is Woo-hoo, we’re gonna be rich!

On the other hand, wealthy people in these post-2008 days in the U.S. are still pretty good about marrying and reproducing.

… In September alone, 29% more couples married than in the same month last year. Hungary saw the most September weddings since 1979.


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