Bhutan Offers Financial Incentives to Boost Birth Rate Amidst Population Decline

Bhutan is introducing financial incentives for families to have more children as the Himalayan kingdom grapples with a plummeting birth rate and an increasing number of young people seeking opportunities abroad.

The nation's annual birth rate has fallen by more than a quarter over the past decade, exacerbating a youth deficit caused by emigration. Prime Minister Tshering Tobgay has repeatedly warned that the declining population poses a crisis that threatens the country's survival.

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The evidence is clear. Bhutan's fertility rate has fallen to near or below the population replacement level.

Under the new 'Third Child Plus' program launched in June, families will receive a monthly payment of $105 (approximately 427 Malaysian Ringgit) for every third child and any subsequent children, up to the age of three. This initiative aims to encourage larger families in a country with a population of less than 800,000 people, situated between India and China.

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It is a good initiative because it encourages families to have three or more children.

Khandu Wangmo, a 35-year-old civil servant, welcomed the incentive but expressed skepticism about its effectiveness. "It is a good initiative because it encourages families to have three or more children," she said. "However, the impact may be limited if the cost of raising children, housing, and childcare continues to be high."

The government views the demographic challenge as a matter of significant national importance, seeking to ensure the country's long-term viability amidst these demographic shifts.

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However, the impact may be limited if the cost of raising children, housing, and childcare continues to be high.