I don't know about Bhutan but street animals (mostly dogs & cats) is very common in Turkiye. From cultural point of view we see them as real residents of the place, we are taking up their land. So we are committed to treat them and feel responsible for their care as well. From a practical point of view, like other commentators suggested, they take care of the habitat - cats prevent rodents from going overpopulated etc.
And they are cute and friendly and nice to have around!
We have taken in two dogs from shi^D^D^D places with feral dog populations (Eastern Europe and Sardinia). Both were ill and heavily traumatized (took me two years before I was able to touch the one of them).
It took 2-3 years per dog and lots of financial and time investment for good food, medicine and upbringing to get them to be somewhat normal.
Are you sure you haven't simply rationalized the dysfunction away?
In India, it's because a very prominent MP (and aunt of INC Rahul Gandhi / daughter in law of former PM Indira Gandhi) in the BJP is a massive dog lover and militantly opposed to regulating the stray population. [0][1]
Countries for sure aren't like "Let's have a population of rabid stray dogs. Wouldn't it be nice". Although they can be useful as they get rid of animal carcasses on the streets. But they have to be taken care of, else there numbers become overwhelming and they might pick up and spread rabies.