Errrrr....no, not at all. People should have children because they want children - and should not have any financial incentive to do so.
Morally, I agree with you. There is too much government assistance for this and for that. It would be a lot simpler and cleaner if the government just kept out of it. It is easy for me to say that, as I can afford my family, and get no government 'hand-outs'. On the other hand, I have friends who would struggle to make ends meet without family assistance.
However, I try very hard to look at government policy from an economic, not moral, point of view. It is in the national interest (economically) to have reasonable population increase. Accordingly, it is in the national interest to fund programs that promote that end. Similarly, it is in the national interest to have a manufacturing industry capacity. Accordingly, it makes sense to bail out the big car companies to keep them here. Once you lose an industry like that, you can't easily get it back.
The same argument applies (FWIW) to our airline industry. If Australia wants a local airline industry, then it may need in future to support QF or DJ or whomever. Of course, such support should be tied to public policy objectives (like, for example, direct flights to under-served ports).
I am not saying that the government should always spend in this way, but that it is rational to do so in some cases even if it is morally or philosophically repugnant. There is nothing worse that insisting on philosophical purity to the detriment of the nation (see USA politics for the last five or so years as a good example - a large part of the congress insists government involvement in health care/insurance is wrong for philosophical reasons, even if all the evidence suggests it will deliver better results for less cost).