The Bhutanese Leading the way.
Projection shows Nu 6 bn cost for 5 years
The Member of Parliament from the Nganglam Constituency, Lamdra Wangdi, questioned on how and when the Government’s is planning to implement the cash incentive of Nu. 10,000 per month for the third child.
In response, the Prime Minister Tshering Tobgay highlighted the importance of sustaining Bhutan’s population amidst concerns of a declining fertility rate, currently standing below replacement levels.
Therefore, the government pledged to pay women Nu 10,000 per month for their third born child until the child turns 3 years old. The program aims to counteract this trend by providing financial support to families, thereby promoting larger family sizes.
“We are currently finalizing the plans, policies, rules, and criteria for the implementation of this program,” said the PM, and further adding, “The Third Child Incentive Program will be launched within this year, alongside efforts to enhance Early Childhood Care and Development (ECCD) facilities nationwide.”
In addition to financial incentives, the government is focusing on creating a conducive environment for population growth, including improving access to ECCD facilities.
These measures are intended to alleviate parental burdens and encourage families to consider having more children.
A study done on the matter based its projection on the number of third child born in the last five years. The study shows an average of 2,100 children born as the third child every year over the past five years.
Using this as the basis and factoring in a 30 percent rise in third child birth rates due to the incentive, a projection has been made from 2024 to 2029.
The projection shows a cost of around Nu 6 billion (bn) for the five years, with the initial years having less pay outs but it increasing with each year.
If the scheme starts in 2024 the first year will see a pay out of Nu 300 to 400 million (mn), 2025 will see Nu 600 mn being paid, 2026 will see Nu 900 mn to Nu 1 bn and 2027 will see the amount go to Nu 1.3 bn, 2028 will see a pay out of Nu 1.4 to Nu 1.5 bn and 2029 will see the highest payment of Nu 1.6 bn.
This means the total amount to be paid will be anything from 6.1 bn to 6.4 bn.
