Bhutan is currently into the mid-term of its fourth democratically elected party, the People’s Democratic Party which saw a comeback after having formed the second Government from 2013-2018. All the elections have seen peaceful transitions of power, with no reported electoral violence, although there continue to be hints of regionalism in voting trends, raising concerns of divisions arising along regional lines among the general population.
While the Constitution of the Kingdom of Bhutan 2008 does not explicitly mention the term “CSOs”, it lays down several key constitutional principles as an enabling foundation for the sector’s existence, the participatory space necessary for civil society to function, and protection as important stakeholders in Bhutan’s democratic and development process, such as the Fundamental Rights and Freedoms, Democratic Participation, Good Governance and Accountability, and Rule of Law and Equality, to name but a few.
The CSO Act of Bhutan formally recognises Civil Society Organisations (CSOs) as important partners in national development and democratic governance. CSOs benefit from policy support such as tax exemptions, sustainable development fee waivers for fielding in international expertise, and operational space within their respective mandates. However, the sector continues to face significant challenges, including limited financial sustainability, barriers to the establishment of new CSOs, and increasing regulatory and reporting requirements that place considerable strain on already limited human resources.
Despite receiving policy support from the government, the sector continues to face challenges related to financial sustainability, operational capacity, regulatory requirements, and an evolving funding landscape. By the end of 2025, 4 out of 54 CSOs (42 PBOs and 12 MBOs) had closed down due to these challenges, along with compliance lapses cited by the CSO Authority (CSOA). The CSOA issued a public notice on 23 May 2026 regarding the voluntary dissolution of a CSO. The organisation has since registered as a Religious Organisation, bringing the total number of registered CSOs in Bhutan to 50.
