The move highlights a growing concern shared by many countries around the world: fewer babies are being born, while populations are getting older.

Under the new policy, families will receive 10,000 ngultrum (around PKR 29,000) per month for every third child and each subsequent child born on or after June 4, 2026. The financial assistance will continue until the child reaches the age of three.

The government has also confirmed that children born before the policy s introduction will qualify, provided they have not yet turned three.

Cabinet Secretary Kesang Deki said the benefit will apply to every child after the second one. Whether a family has three, four, five, or even more children, each eligible child will receive the support.

The announcement comes as Bhutan faces a noticeable demographic slowdown.

Official figures show annual births dropped from 11,001 in 2015 to 8,153 in 2024 — a decline of nearly 26 percent. At the same time, the country s fertility rate has fallen close to the replacement level of 2.1 children per woman, the threshold generally considered necessary to maintain a stable population.

Government officials warn that declining births, an ageing society, and the migration of young people abroad are creating long-term risks for the country s workforce, economy, and social structure.

Many young Bhutanese have been leaving the country in search of better educational and employment opportunities, adding further pressure to an already shrinking population base.

Bhutan is globally known for measuring progress through its unique concept of Gross National Happiness rather than focusing solely on economic output. However, even the world s most happiness-focused nation is now confronting the realities of demographic change.

The challenge is not unique to Bhutan.

Across Asia, governments are increasingly experimenting with incentives to encourage larger families. In 2023, India s state of Sikkim introduced extended maternity leave, paternity leave, and financial assistance for couples seeking fertility treatment.

For Bhutan, the hope is that financial support will ease the burden of raising children while helping maintain a healthier population balance in the years ahead.

The message behind the policy is simple: in a country worried about having too few children, bigger families are no longer just welcomed — they are being rewarded.