India cuts development aid to Maldives amid strained relations, allocates highest for Bhutan | India News
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NEW DELHI: In accordance with India’s ‘neighbourhood first’ policy, the Union Budget for 2024-25 allocated the largest share of development aid, amounting to Rs 2,068 crore, to Bhutan. However, the Maldives witnessed a significant decrease in its outlay, dropping from Rs 770 crore last year to Rs 400 crore this year.
In the interim budget released in February, India has proposed a 22% reduction in aid to the Maldives for the 2024-25 financial year.The aid was set at Rs 600 crore for developmental assistance, ranking it as the third-highest recipient of aid from the government for foreign countries. This was reduced further to Rs 400 crore in the budget proposed today, marking a drop of over 48 per cent.
This reduction in allocation comes amidst strained relations between the two nations following the election of Mohamed Muizzu, known for his pro-China stance, as the president of Maldives in November last year.
The ministry of external affairs (MEA) received a total allocation of Rs 22,154 crore for the fiscal year 2024-25, compared to the revised outlay of Rs 29,121 crore in the previous year. This allocation remains unchanged from the interim budget presented to the Parliament in February.
Nepal received the second-largest outlay of Rs 700 crore, while Sri Lanka was allocated Rs 245 crore for 2024-25, a significant increase from the previous year’s Rs 60 crore. The allocation for the Chabahar Port in Iran remained steady at Rs 100 crore.
Budgetary aid of Rs 200 crore set aside for Afghanistan, slightly lower than the previous fiscal’s Rs 220 crore. Bangladesh will receive Rs 120 crore in development aid, and Myanmar’s allocation has been reduced to Rs 250 crore from last fiscal’s Rs 320 crore.
Mauritius is set to receive Rs 370 crore, while African countries have been allocated Rs 200 crore.
The total development assistance to various countries and regions, including Latin America and Eurasia, amounts to Rs 4,883 crore. Additionally, a sum of Rs 989 crore has been allocated under the category ‘advances to foreign governments’.
In the interim budget released in February, India has proposed a 22% reduction in aid to the Maldives for the 2024-25 financial year.The aid was set at Rs 600 crore for developmental assistance, ranking it as the third-highest recipient of aid from the government for foreign countries. This was reduced further to Rs 400 crore in the budget proposed today, marking a drop of over 48 per cent.
This reduction in allocation comes amidst strained relations between the two nations following the election of Mohamed Muizzu, known for his pro-China stance, as the president of Maldives in November last year.
The ministry of external affairs (MEA) received a total allocation of Rs 22,154 crore for the fiscal year 2024-25, compared to the revised outlay of Rs 29,121 crore in the previous year. This allocation remains unchanged from the interim budget presented to the Parliament in February.
Nepal received the second-largest outlay of Rs 700 crore, while Sri Lanka was allocated Rs 245 crore for 2024-25, a significant increase from the previous year’s Rs 60 crore. The allocation for the Chabahar Port in Iran remained steady at Rs 100 crore.
Budgetary aid of Rs 200 crore set aside for Afghanistan, slightly lower than the previous fiscal’s Rs 220 crore. Bangladesh will receive Rs 120 crore in development aid, and Myanmar’s allocation has been reduced to Rs 250 crore from last fiscal’s Rs 320 crore.
Mauritius is set to receive Rs 370 crore, while African countries have been allocated Rs 200 crore.
The total development assistance to various countries and regions, including Latin America and Eurasia, amounts to Rs 4,883 crore. Additionally, a sum of Rs 989 crore has been allocated under the category ‘advances to foreign governments’.
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