Union Budget 2025: Maldives, Afghanistan, Bhutan get more aid; Myanmar sees cuts
- In Reports
- 06:46 PM, Feb 01, 2025
- Myind Staff
Finance Minister Nirmala Sitharaman on Saturday during her speech in Lok Sabha emphasised that the Union Budget 2025 caters to diverse segments of society, including the middle class to farmers, aligning with the aspirations of GYAN (Gareeb, Yuva, Annadata and Nari Shakti), which represents the underprivileged (Gareeb), youth (Yuva), farmers (Annadata), and women's empowerment (Nari Shakti).
India's budget isn't just about domestic development; it also highlights the country's commitment to strengthening ties with its Asian neighbours. The mention of countries like Maldives, Afghanistan, and Myanmar in the budget signals New Delhi's efforts to support bilateral connections with these nations.
India's budget for 2025-26 has dedicated Rs 5,483 for foreign aid, a slight decrease from last year's Rs 5,806. This funding will be distributed to recipient countries through the Ministry of External Affairs and Ministry of Finance, supporting India's diplomatic efforts and strategic partnerships abroad.
The Maldives has received a significant increase in funding in this year's budget, with Rs 600 crore allocated, up from Rs 470 crore last year. This boost comes despite a recent strained relations with Maldives, fuelled by President Mohamed Muizzu's "India Out" campaign and his growing ties with China.
Last October, India and the Maldives signed a bilateral currency swap agreement of $ 400 million and 30 billion rupees ($346 million), and discussions also began on a free trade agreement focusing on goods and services.
Other countries benefiting from the budget include Afghanistan, which will receive Rs 100 crore, and Bhutan, which is allocated Rs 2150 crore. In contrast, Myanmar's allocation stands at Rs 350 crore.
Afghanistan is set to receive a significant increase in financial aid, with Rs 100 crore allocated for 2025-26, double the Rs 50 crore granted for 2024-25.
On the other hand, financial assistance for certain island nations, such as Mauritius and Seychelles, has been reduced. Seychelles' aid has been cut by 48%, with the proposed grant slashed to Rs 19 crore from Rs 37 crore in 2024-25.
Mauritius will also see a decrease in funding, with Rs 500 crore allocated for 2025-26, down 13% from the Rs 576 crore granted for the current financial year.
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