The tiny Himalayan kingdom of Bhutan is grappling with a declining population and has unveiled cash incentives to encourage families to have more children. Nestled between China and India in the eastern Himalayas, Bhutan, home to fewer than 800,000 people, is offering monthly payments of 10,000 ngultrums (approximately $105) for every third and subsequent child born on or after June 4, until the child reaches the age of three, as per a government statement released on Thursday.
Incentive Details
The incentive also covers eligible third and subsequent children born before June 4 but who have not yet turned three years old as of that date. Cabinet Secretary Kesang Deki clarified that the benefit applies to any number of children after the second child. “They can have three, four, five, six or seven children,” she told Reuters on Friday.
Declining Birth Rates
Bhutan’s total annual births have dropped from 11,001 in 2015 to 8,153 in 2024, a decline of about 26%. The total fertility rate, or children per woman, has fallen to nearly the replacement level of 2.1 over the same period, official data show. A shrinking and aging population, coupled with outward migration, poses long-term challenges for Bhutan’s workforce, communities, and socio-economic development, the statement noted.
Young Bhutanese are increasingly seeking opportunities abroad, primarily in Australia, amid growing economic dissatisfaction in the landlocked Buddhist kingdom. The new policy reflects the government’s “commitment to the welfare of mothers, children, and families, and to the long-term sustainability of Bhutan's population,” it added.
Regional Context
The neighboring Indian state of Sikkim also announced incentives in 2023, including year-long maternity leave for women, month-long paternity leave for men, and financial support for those seeking pregnancy through in-vitro fertilization. Bhutan is renowned for its pioneering Gross National Happiness index, an alternative economic measure that considers factors typically overlooked by gross domestic product, such as recreation and emotional well-being.
