THIMPHU: The Himalayan kingdom of Bhutan has unveiled a new population support programme offering financial incentives to families who have more than two children, as the country grapples with declining birth rates and increasing outward migration.
The government announced that families will receive a monthly payment of 10,000 ngultrums (approximately $105) for every third and subsequent child born on or after June 4. The financial assistance will continue until the child reaches the age of three.
Policy Aims to Reverse Population Decline
The initiative comes as Bhutan faces a significant demographic challenge.
According to official statistics, annual births in Bhutan have declined from 11,001 in 2015 to 8,153 in 2024, representing a drop of approximately 26 percent over the past decade.
Government officials say the country’s fertility rate has also fallen close to the replacement level of 2.1 children per woman, raising concerns about future population growth and workforce sustainability.
Incentives for Every Child After the Second
Cabinet Secretary Kesang Deki explained that the financial support will apply to all children born after the second child.
“They can have three, four, five, six or seven children,” Deki said while explaining the programme.
The scheme will also cover eligible children born before June 4 who are still under three years old.
Concerns Over Ageing Population
Bhutan’s government warned that a declining and ageing population could have serious long-term implications for economic development, labour markets, and community sustainability.
Officials noted that increasing numbers of young Bhutanese are leaving the country in search of educational and employment opportunities abroad, particularly in countries such as Australia.
The government stated that the new policy reflects its commitment to supporting mothers, children, and families while safeguarding the country’s demographic future.
Regional Trend Across Asia
Bhutan joins several Asian countries and regions that have introduced incentives to address falling birth rates.
Earlier, neighboring Sikkim launched measures including:
- One-year maternity leave
- One-month paternity leave
- Financial assistance for fertility treatments such as IVF
Several countries across Asia, including Japan, South Korea, China, and Singapore, have also introduced incentives in recent years to encourage higher birth rates amid ageing populations.
Bhutan’s Unique Development Model
Bhutan is internationally known for promoting the concept of Gross National Happiness (GNH), an alternative development framework that measures societal well-being beyond economic growth.
The index considers factors such as:
- Emotional well-being
- Environmental sustainability
- Cultural preservation
- Community vitality
- Health and education
Officials believe supporting families and maintaining a sustainable population is consistent with Bhutan’s broader development philosophy.
Looking Ahead
Demographers say the effectiveness of financial incentives alone remains uncertain, as factors such as employment opportunities, housing costs, education, and quality of life often play a larger role in family planning decisions.
However, Bhutan’s latest move signals growing concern among policymakers about demographic decline and its potential impact on the country’s future economic and social stability.
