How Bhutan plans to tackle its declining birth rate
What's the story
Bhutan, the tiny Himalayan kingdom, is facing a major population crisis as its birth rate continues to decline and young people migrate in search of better opportunities. The annual number of births has decreased by over 25% in the last decade, worsening the country's demographic challenges. To combat this trend, Prime Minister Tshering Tobgay has launched a government initiative called "Third Child Plus" program.
Initiative
Plans to tackle 'existential' crisis
The "Third Child Plus" program, launched in June, offers monthly payments of $105 for each third or subsequent child until they turn three. Tobgay has stressed the urgency of the situation, calling Bhutan's declining fertility rate an "existential" crisis. The country's fertility rate has dropped to about 1.8 children per woman, below the replacement level, while the proportion of people aged 65 and over is projected to rise from around 6% to 17% by 2050.
Demographic challenges
A look at migration
The Bhutanese government is concerned that a declining birth rate, coupled with continued emigration, will leave too few working-age people to sustain the economy and support an aging population. As of May 2026, over 71,000 Bhutanese were living abroad, with Australia being home to about 55% of them. The program's briefing note warned that while migration brings remittance benefits, its concentration among prime working and reproductive ages further constrains labor force participation, domestic fertility, and long-term population momentum.
Family planning
Complex reasons behind smaller families
Experts say the reasons behind smaller families are complex, ranging from rising living and childcare costs to changing priorities. Preeti Nirola, a 34-year-old mother of one, said she would like another child but finances remain a major obstacle. The UN Population Fund, which supported the program, advocates expanding choices through affordable childcare and supportive social policies rather than simply raising birth numbers.