&imwidth=800&imheight=600&format=webp&quality=medium "India ups budget allocation for Afghanistan, Mongolia, Nepal, Sri Lanka but a cut for Bangladesh")
India's Union Budget for the upcoming fiscal year has increased development aid allocations to several key neighbouring countries, reflecting a continued emphasis on its "Neighbourhood First" policy amid evolving regional dynamics. India boosts aid to Bhutan, Nepal and others in neighbourhood policy push.
In the latest Union Budget, India has raised financial support for Bhutan, its closest strategic partner, to Rs 2,288.55 crore, marking a notable increase and underscoring the enduring special relationship between the two nations, particularly in areas such as hydropower and infrastructure development.
Allocation to Afghanistan shows more Indian projects in the pipeline for the country. India, and the Islamic Emirates of Afghanistan govt have increased ties. Last year, India upped its mission in Kabul to an embassy. In January, Afghanistan appointed a diplomat in Delhi.
Nepal receives Rs 800 crore, up by Rs 100 crore, while Sri Lanka is allocated Rs 400 crore, also an increase of Rs 100 crore. These adjustments come as both countries navigate economic recovery.
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Smaller but significant hikes include Mongolia, where funding has jumped substantially from Rs 5 crore previously to Rs 25 crore (an increase of Rs 20 crore), and Mauritius, up by Rs 50 crore to Rs 550 crore. Seychelles remains unchanged at Rs 19 crore.
In contrast, allocations to Bangladesh have decreased by Rs 60 crore to Rs 60 crore, Maldives by Rs 50 crore to Rs 550 crore, and Myanmar by Rs 50 crore to Rs 300 crore. Notably, for Bangladesh, only Rs 34 crore of the previous Rs 120 crore allocation was utilised, indicating potential under-absorption or shifts in project implementation.
The Ministry of External Affairs (MEA) overall budget has seen a modest rise to Rs 22,118.97 crore, up from Rs 20,516.61 crore in the previous year.
