With Russia facing a population decline of 700,000 people a year, President Vladimir Putin highlighted the problem of the country's birth rate among other issues in his May 10 State of the Nation address, and ordered the government to address the problem.
First Deputy Prime Minister Dmitry Medvedev said: "The bill is almost ready and can be submitted to the State Duma [parliament's lower chamber]."
Health and Social Development Minister Mikhail Zurabov said that under the bill families will be granted maternal (or family) capital following the birth or adoption of a second child.
"Russians will be able to use the family maternal capital for the first time in 2010," Zurabov said adding that 131.8 billion rubles ($4.9 billion) will be required for the purpose in 2008-2009.
President Putin said in his address in May that the government should give women at least 250,000 rubles ($9,225) as financial aid following the birth of a second child.
"The state must support women who give birth to a second child - to give them a primary basic maternal capital to raise their social status. Experts said the size of such state obligations should be at least 250,000 rubles," Putin said.
Zurabov also said the government had approved amendments to the Tax Code, which frees the maternal capital from taxation.
