Bhutan Launches Third Child Plus Programme Amid Falling Birth Rates
Bhutan has launched the Third Child Plus Programme, providing Nu 10,000 monthly support for eligible third and subsequent children as the country responds to declining birth rates and demographic challenges.
Bhutan has launched a new national initiative aimed at encouraging larger families and responding to the country’s changing demographic landscape.
The Third Child Plus Programme (TCPP), announced on the Birth Anniversary of Her Majesty Queen Jetsun Pema, will provide financial support to families with third and subsequent children. The programme comes as Bhutan faces declining birth rates, an ageing population, and concerns about the long-term sustainability of its workforce and communities.
Under the scheme, eligible third and higher-order children born on or after June 4 will receive a monthly cash benefit of Nu 10,000 (~USD104) until they reach the age of three.
The programme will also cover eligible children born before June 4 who are still under the age of three, with payments beginning from June 4, 2026.
Responding to a Changing Demographic Trend
According to government data, Bhutan’s annual births have fallen from 11,001 in 2015 to 8,153 in 2024. During the same period, the country’s Total Fertility Rate, the average number of children born per woman, has declined to around the replacement level of 2.1.
The government said the decline in births, combined with an ageing population and outward migration, could have significant long-term implications for the country’s labour force, economic growth, and social development.
Births of third-order and higher children have also declined notably in recent years, prompting policymakers to explore measures that make family life more affordable and accessible.
How the Programme Will Work
Each eligible child will be registered independently through Bhutan’s Civil Registration and Census System.
Monthly payments will be transferred directly into beneficiaries’ bank accounts. The government said this approach is intended to ensure efficient administration and direct support for families raising young children.
The Prime Minister said that for 2026-2027 financial year, around Nu 31 M (~USD324000) has been allocated for the Third Child Plus programme.
Part of a Broader Family Support Strategy
The Third Child Plus Programme is one component of a wider effort to create a more family-friendly policy environment in Bhutan.
The government has indicated that complementary measures will include:
- Expanded childcare support
- More flexible working arrangements
- Enhanced parental leave provisions
- Policies aimed at reducing the cost and challenges of raising children
Officials say these measures are designed not only to encourage larger families but also to improve the overall wellbeing of parents and children.
How Other Countries Are Addressing Low Birth Rates
Bhutan is not alone in facing demographic challenges. Many countries across Asia, Europe, and parts of North America have introduced policies aimed at encouraging childbirth as fertility rates fall below replacement levels.
Singapore: Baby Bonuses and Family Support
Singapore has one of the world’s lowest fertility rates and has spent decades expanding support for families.
The country’s policies include cash gifts for newborns, matched savings schemes for children’s education and healthcare, housing incentives for young couples, and subsidised childcare services.
In 2023, Singapore further increased its Baby Bonus cash gift to help offset the costs of raising children.
South Korea: Extensive Financial Incentives
South Korea has invested billions of dollars in programmes designed to raise birth rates.
Measures include monthly child allowances, fertility treatment subsidies, parental leave benefits, and housing support for families with children.
Despite these efforts, fertility rates remain among the lowest globally, highlighting the complexity of demographic change.
Hungary: Tax Breaks for Larger Families
Hungary has adopted a different approach by providing substantial tax incentives for families with multiple children.
Women with four or more children are exempt from personal income tax for life, while families can access housing grants and low-interest loans tied to family size.
The government has promoted these policies as part of a long-term strategy to support population growth.
Japan: Childcare and Parenting Support
Japan has expanded childcare services, increased child allowances, and introduced measures to improve work-life balance.
The government has increasingly focused on reducing the financial and practical burdens associated with raising children, particularly in urban areas where living costs are high.
A Long-Term Investment in Bhutan’s Future
Demographic shifts typically unfold over decades, making early policy responses important for long-term planning.
While financial support alone may not reverse declining birth rates, international experience suggests that comprehensive family policies can help reduce barriers to having children and improve family wellbeing.
For Bhutan, the Third Child Plus Programme represents a significant step toward addressing demographic challenges while supporting families during the crucial early years of a child’s life.
As implementation details emerge, policymakers and families alike will be watching closely to see how the initiative contributes to Bhutan’s social and economic future.
