The truth is, with the declining birth rate of a country, it might seem like the likely choice to incentivise having more kids. Because whether we like it or not, the parents of today will grow old and die, and the workforce of the nation will have to replace them. This could mean that in 10-20 years, the country might have less people available to keep the country running.
Hence, the reason they could encourage more kids. I feel that if they're strategic about it, they could make it work. But I also know that it will definitely have it's long term effects.