Commitment to Equity Analysis · Bhutan

Fiscal Policy Reference Dashboard

CEQ 2017 → 2022 Update
🇧🇹 Bhutan
2017 – 2022

CEQ 2017

Not included — data not available.

Kidu (The Royal Grant) — Programme Overview

Kidu (The Royal Grant) is Bhutan's largest and most significant social assistance programme, serving as a permanent, non-contributory safety net. While the practice of Kidu has existed since the 17th century, it was systematised in the 1950s and has since been refined into a highly organised management and disbursement system.

Programme Overview and Management

  • Administration: Administered by the Office of the Gyalpoi Zimpon and implemented through regional offices and local government officials, including Dzongdas (district governors) and Gups (block leaders).
  • Technology: Utilizes the Kidu Information System, which is interoperable with databases from the National Land Commission and the Department of Immigration to verify eligibility and track management.
  • Funding: Financed through the Druk Gyalpo Relief Fund Act 2012, which receives an annual Nu. 100 million replenishment from the Ministry of Finance, along with public and private donations.

Eligibility Criteria

The Kidu programme is designed to support individuals who fall through the cracks of other social protection systems. It specifically targets:

  • The poor and extreme poor
  • The landless
  • Persons with disabilities
  • Impoverished children and students
  • Destitute elderly citizens who lack family care

Transfer Amounts and Sub-Programmes

Kidu provides both cash and in-kind transfers, such as land grants, timber for housing, and scholarships. Key sub-programmes include:

  • Gensho Zhabtog (Support for the Elderly): Targeted at destitute senior citizens, providing a monthly stipend of Nu. 1,200. Beneficiaries can also request basic household items and groceries.
  • Funeral Grant: A grant of Nu. 5,000 is provided to the family of a deceased Gensho Zhabtog beneficiary to cover funeral expenses.
  • Gyalpoi Tozey (Scholarships): Provides educational support to impoverished students (reaching 1,629 beneficiaries in 2019).
  • Goensho Tshamkhang: An elderly care home that accommodates up to 78 inhabitants who have no family to care for them.

Recent Changes and Trends

The most significant recent change to the Kidu framework was its adaptation to address the COVID-19 pandemic:

  • Druk Gyalpo Relief Kidu (DGRK): Established in April 2020 as an interim (temporary) measure to provide income support to those suffering from economic distress due to the pandemic.
  • Pandemic Impact: Between April 2020 and February 2022, the DGRK provided income support to 54,783 individuals and 15,464 children, reaching approximately 8.4% of the total population.
  • Evolution toward Shock-Responsiveness: While the core Kidu remains a permanent fixture, it increasingly acts as an ad hoc support mechanism for covariate shocks (natural disasters or economic crises) in the absence of a formal national shock-responsive social protection floor.
Source: UNICEF. 2025. Social Protection Situational Analysis & Landscaping Assessment.

Kidu Recipients by Group

Group / Category 2020 2021
Share of Group (%) Share of Kidu Recipients (%) Share of Group (%) Share of Kidu Recipients (%)
Overall
Share of Kidu recipients (%)18.012.4
By Job Type
Public14.813.015.63.9
Private8.029.213.418.3
Laborer4.56.94.77.6
Self-employed22.716.115.816.2
Not employed / absent52.019.150.612.7
By Sector
Agriculture16.67.811.80.5
Manufacturing5.216.95.711.6
Services26.222.531.813.2
Not employed / absent52.019.150.612.7
By Urban / Rural
Urban36.122.738.515.7
Rural63.915.361.510.3
By COVID Shock Severity
Severe COVID shock16.428.6
Severe shock not identified83.615.9
Notes: "Share of group" = share of individuals in that group in total respondents. "Share of Kidu recipients" = share of individuals who received Kidu within the group. "Severe COVID shock" respondents either stopped working, not seeking a job, or decreased operations because of COVID-19. Source: Authors' calculations. · Source: Bhutan Poverty Assessment