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Russia to spend around $3.7 bln in 2007 to boost population

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MOSCOW, June 5 (RIA Novosti) - Russia will spend around 95 billion rubles ($3.7 billion) in budget funds during 2007 to counter the national demographic crisis, a first deputy prime minister said Tuesday.

Depopulation is widely seen as one of the main threats facing the country. According to the United Nations, Russia's population, currently at about 142 million, may fall by one third by the middle of the century.

Dmitry Medvedev, opening a national conference on socio-demographic problems and priority national projects, said that in 2008-2010 there were plans to invest almost 500 billion rubles ($19.3 billion) on socio-demographic programs.

The government official reported "certain progress" in the country's demographic situation. He said almost 490,000 children were born in Russia in the first four months of 2007, up 5% against the same period of last year. Medvedev said child mortality had fallen by around 7% in the first four months of the year, compared to the same period of 2006.

Medvedev urged the federal and regional governments to join efforts to achieve socio-demographic targets. He said regions should develop their own procedures on the basis of a federal program, which will soon be adopted.

"Our country is a large one, and there is a substantial gap between regions," the first deputy premier said. "This is why territorial demographic programs should be developed."

Medvedev also urged federal and regional authorities to develop procedures for investing and administering maternity incentive payments. Payouts of about $9,500 for the birth of two or more children were introduced in early 2007 following a presidential initiative announced in May 2006.

The official said it would also be necessary to expand the network of state kindergartens, which have "approximately 1 million [children]" on waiting lists across Russia.

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