Government to conduct demographic study before third child incentive

2026-03-09 - 09:14

Cabinet Secretary Dasho Kesang Deki said the third child incentive was discussed in the cabinet on 16th February but a detailed study will be done before any implementation. She said, “The total fertility rate has fallen below the replacement level and is projected to decline further, while the proportion of citizens aged 65 and above continues to rise,” said the Secretary, noting that such demographic shifts carry long-term implications for the labour force, economic productivity, fiscal sustainability, and the strength of Bhutan’s social protection systems. In response to these trends, the government proposed the Third Child Incentive Program (TCIP), aimed at supporting families who wish to have three or more children but face financial constraints. However, the implementation of the program will follow further study. “While the government is ready with both the proposal and the budget, the Cabinet, during its 77th Session of the Lhengye Zhungtshog, recognized the complexity of demographic change and directed that a comprehensive demographic study be undertaken before implementing any major intervention.” The planned study will examine several key factors shaping Bhutan’s demographic trends, including fertility patterns, marriage trends, migration dynamics, and overseas births among Bhutanese citizens. The study is intended to ensure that any policy decisions related to population trends are grounded in strong evidence and a deeper understanding of the country’s evolving demographic realities. At the same time, the government is also working on a broader Sustainable Population Strategy, which is expected to be finalised within the current financial year. “The strategy will adopt a holistic approach integrating employment generation, youth retention, gender-responsive policies, childcare support systems, social protection reforms, and human capital development,” said the Secretary. She emphasised that the government’s approach to addressing demographic challenges is careful and evidence-based.