In the Union Budget presented by Finance Minister Nirmala Sitharaman on Tuesday, a significant portion of the Ministry of External Affairs’ (MEA) funding has been directed towards projects in neighbouring countries.
Sri Lanka has seen a notable increase in funding, receiving 2450 million Indian rupees (INR) for India-funded projects, up from last year’s allocation of 1500 million INR. This additional 950 million INR underscores India’s ongoing support for Sri Lanka, particularly after the economic crisis that led India to provide a substantial aid package, including grants and a line of credit totalling $4 billion.
Nepal has also benefited from the increased allocation, with a new budget of 7000 million INR, marking a 1500 million INR rise from last year’s 5500 million INR. In Seychelles, the allocation has been significantly augmented from 100 million INR to 300 million INR.
However, Bhutan, the largest recipient of the annual MEA allocation, has experienced a reduction in funding. This year’s budget for Bhutan stands at 20,685.6 million INR, a decrease of 3320.2 million INR. Despite this reduction, Bhutan remains a key partner for India, as evidenced by the recent visit of Foreign Secretary Vikram Misri to Thimphu, where 61 projects worth 49,580 million INR were approved. The decrease in the allocation is not expected to impact ongoing or planned projects.
Other countries have seen varied adjustments in their funding. Myanmar, grappling with ongoing conflict, has received 2500 million INR this year, a reduction from the previous year’s 4000 million INR. Mauritius has seen its allocation drop by 907.9 million INR to a total of 3700 million INR. Mongolia’s funding has been trimmed from 70 million INR to 50 million INR, while Bangladesh’s allocation has decreased by 800 million INR to 1200 million INR.
In contrast, both Afghanistan and the Maldives have retained their previous allocations of 2000 million INR and 4000 million INR, respectively.
Additionally, the budget has allocated an extra 50 million INR for the MEA’s ‘Aid for Cultural and Heritage Projects,’ increasing the total allocation for these initiatives to 150 million INR.
