Annual births have dropped by more than a quarter over the past decade, compounding the country's loss of youngsters to migration.
Prime Minister Tshering Tobgay has repeatedly rung the alarm over the population slump, calling it an "existential" crisis, according to the state's Bhutan Broadcasting Service.
"The evidence is unambiguous -- Bhutan's fertility has declined to near or below replacement level," Tobgay wrote in the introduction to the government's "Third Child Plus" program, launched in June.
Bhutanese girls in traditional dress sit outside Rinpung Dzong in Paro Valley, Bhutan, March 16, 2011. Photo by Reuters
The scheme provides monthly payments of US$105 for each third or subsequent child until they turn three.
