Boosting Bhutan: Cash Incentives to Tackle Population Decline

Bhutan, facing a declining population, offers cash incentives for larger families. Monthly payments target families with three or more children, born on or after June 2026. Bhutan's declining birth rate and fertility levels worry officials, prompting policies to ensure socio-economic stability and sustain the population.

In response to a shrinking population, Bhutan has introduced cash incentives to encourage larger families. The Himalayan kingdom will provide monthly payments equivalent to $105 for families with three or more children born from June 2026.

The incentive aims to counter a decline in birth rates from 11,001 in 2015 to 8,153 in 2024, while the fertility rate nears the replacement level of 2.1 children per woman. Officials emphasize that a dwindling and ageing population could affect Bhutan's workforce and socio-economic growth.

This population policy mirrors steps in India’s Sikkim and aligns with Bhutan's Gross National Happiness index, highlighting the nation's commitment to well-being and long-term sustainability.