As Finance Minister Nirmala Sitharaman presented her eighth consecutive budget on February 1, her budget speech also carried announcements regarding India’s foreign aid to different countries. The Ministry of External Affairs (MEA) has allocated a total of Rs 5,483 crore in aid to foreign nations, which majorly takes into account allocations for neighbouring and strategic countries. India’s aid to foreign countries has given primacy to its ‘Neighbourhood First’, with more than 60 per cent of the budged kept aside for immediate neighbours.
Bhutan ranks at the top
Notably, Bhutan ranks at the top in terms of receiving foreign aid from India as it gets more than Rs 2,100 crore, witnessing a slight increase from last year’s allocations.
Despite meetings held recently between representatives of India and Afghanistan, the aid for the country has been reduced as it has come down to Rs 100 crore from a previous year allocation of Rs 200 crore.
Maldives emerges as major beneficiary
Maldives has also emerged as a major beneficiary as India’s aid for the country has gone up to Rs 600 crore from Rs 400 crore. The increase in the foreign aid to Male is significant as it comes in the backdrop of Maldives trying to mend ties with New Delhi.
Moreover, the budget set aside Rs 6,81,210 crore as defence outlay for 2025-26 over the current fiscal’s allocation of Rs 6.22 lakh crore amid the military’s push for modernisation in the face of security challenges from China and Pakistan.
Out of the total allocation, Rs 1,80,000 crore has been earmarked to the armed forces for capital expenditure that largely includes purchasing new weapons, aircraft, warships and other military hardware.
The defence ministry said the total defence budget of Rs 6. 81 lakh crore is an increase of 9. 53 per cent over the outlay made for the current financial year.
On the capital outlay, the defence ministry said Rs 1,48,722. 80 crore is planned to be spent on “modernisation budget” to procure new military hardware and remaining Rs 31,277 crore is for expenditure on research and development and to create infrastructural assets.
(With inputs from PTI)
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