In a significant policy shift aimed at countering a sharp drop in fertility rates, the Royal Government of Bhutan has announced direct cash incentives for families having additional children. The initiative is designed to address growing demographic concerns in the Himalayan nation, where the total fertility rate has fallen below the replacement level needed to maintain a stable population.
Under the new scheme, eligible families will receive monthly financial allowances for their second, third, and subsequent children to help offset childcare and upbringing costs. Officials hope the policy will cushion the country against long-term economic challenges associated with an aging population, workforce shortages, and rural-to-urban migration, while supporting family well-being in alignment with Bhutan’s Gross National Happiness framework.
