Will a free year of preschool entice parents to procreate? Beijing bids to boost births
The move, part of a phased plan to make preschool education free, aims to 'effectively lower education costs and improve the level of basic public education services', the State Council, China's cabinet, said on Tuesday.
Children enrolled in approved private kindergartens will also have their tuition fees reduced, with the amount based on the value of the fee exemption at public kindergartens in the same locality.
While parents will still have to pay other fees, such as meal expenses and administrative charges, the scheme is expected to offer welcome relief to families struggling with a weak labour market and a prolonged real estate slump that has eroded household wealth amid a slowing economy.
'These measures can be viewed as a continuation of previous consumption policies,' said Ding Shuang, chief Greater China economist at Standard Chartered Bank, adding that they are a step in the right direction even if their impact remains uncertain.
Kindergartens will be provided with subsidies to offset the loss of tuition revenue from the new policy, with funding to be shared by the central and local governments.
Beijing will fund at least half, and up to 80 per cent, of the total cost, depending on the fiscal strength of the locality, according to guidelines released by the State Council.
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