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Why Andhra Pradesh's Cash-For-Children Policy Will Not Fix Its Economy

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19.06.2026

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 A politician thinks of the next election, a statesman thinks of the next generation.

~ James Clarke, author and theologian.

To reverse the state’s declining population growth trends and augment its working-age population, Andhra Pradesh chief minister N. Chandrababu Naidu recently announced cash incentives for families having more children – Rs 30,000 for the birth of a third child and Rs 40,000 for a fourth. 

Even before this, Andhra Pradesh had introduced a “Population Management Policy” in the state assembly on March 5, 2026, which is presently under consultation with stakeholders. The policy proposes Rs 25,000 on the birth of a second child.

Apart from direct financial assistance, families with more than two children will receive several additional benefits: nutrition allowance of Rs 1,000 every month for five years for the third child, free education for the third child up to 18 years of age, mandatory two-month-long paternity leave and six months of maternity leave, among others. 

This is not an isolated instance. There are many who view fertility levels through the lens of religion. 

The quality of human resources is fundamental to economic growth discourse. Hence, to analyse the implications of this policy on Andhra Pradesh’s development trajectory, a look at some of the state’s prevailing parameters is instructive. 

On nutrition, the National Family Health Survey (2019-21) found that in Andhra Pradesh, 63.2% of children aged six to 59 months were anaemic, 31.2% of under-five children were stunted (low height for age) and 16.1% were wasted (low weight for height).

Among adults aged 15-49 years, 58.8% of females and 16.2% of males were anaemic. In the 2023-24 survey, prevalence of anaemia was not........

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