Union Budget 2024: Bhutan gets lion’s share of India’s external aid portfolio
- In Reports
- 10:47 PM, Jul 23, 2024
- Myind Staff
Bhutan once again secured the largest portion of the Indian government's external aid budget, with an allocation of ₹2,068 crore in the 2024-25 budget. Additionally, the budget maintained an allocation of ₹100 crore for the development of Iran's Chabahar port.
The external affairs ministry received an allocation of ₹22,154 crore, while its actual expenditure in 2023-24 was ₹29,121.88 crore, according to the budget documents.
In line with the government’s “Neighbourhood First” policy, Bhutan was allocated ₹2,068 crore from the total external aid budget of ₹4,883.56 crore, which includes soft loans and grants for foreign countries and projects. Earlier this year, India announced it would double its financial support for Bhutan’s five-year plans from ₹5,000 crore to ₹10,000 crore.
The outlay for foreign countries included ₹700 crores for Nepal, ₹400 crores for the Maldives, ₹370 crores for Mauritius, ₹250 crores for Myanmar, ₹200 crores each for Afghanistan and various African nations, ₹120 crores for Bangladesh, ₹245 crores for Sri Lanka, and ₹40 crores for Seychelles.
The allocations in the current budget for Nepal, Sri Lanka, and Seychelles are notably higher than in the previous budget. Nepal was allocated ₹700 crore in 2024-25, compared to ₹550 crore in 2023-24 and ₹650 crore in the fiscal year before that. Similarly, Sri Lanka, which received only ₹60 crore in the last fiscal year, has been allocated ₹245 crore this time. Seychelles saw an increase from ₹9.91 crore to ₹40 crore. The allocation for the Maldives received a 48.11% percent cut down from ₹770.90 crores in 2023-24 to ₹400 crores now.
India played a crucial role in helping Sri Lanka navigate its worst financial crisis in decades by providing nearly $4 billion in aid, including credit lines for emergency purchases of food, fuel, and medicines.
The allocation of ₹100 crore for Chabahar port underscores the importance of the facility in regional connectivity efforts.
In May, India and Iran signed a 10-year agreement on operations at the Shahid Beheshti terminal of Chabahar port, where an Indian state-run entity is responsible for managing operations.
In addition to a commitment to invest $120 million in acquiring equipment for port operations, India offered a credit line of $250 million for developing infrastructure around the deep-sea port in the Gulf of Oman.
The total development assistance for regions such as Latin America and Eurasia in the 2024-25 budget was set at ₹50 crore.
The external affairs ministry’s total outlay encompasses expenses on embassies and missions, passport and emigration services, external aid for countries and projects abroad, and contributions to organisations like the Indian Council for Cultural Relations (ICCR) and the South Asian University.
Image source: The Indian Express
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