Union Budget 2025: Eye on Ocean, funds hiked for Maldives

While Bhutan again cornered the lion's share in terms of aid to foreign countries, there was substantial increase in aid for the Maldives too with the govt earmarking Rs 600 crore for the Indian Ocean neighbour, a jump of Rs 130 crore from the revised allocation last year.

The Maldives witnessed a significant decrease last year as the govt outlay dropped from Rs 770 crore to Rs 400 crore, before it was revised to Rs 470 crore. Budgetary allocation for foreign countries is a dynamic process and can be revised later, depending upon progress, or lack thereof, in the development partnership.

The total aid to foreign countries for 2025-26 stood at more than Rs 5,400 crore, which is significantly more than the original allocation for last year but less than the revised figure for the same. In all, the allocation for MEA stood at Rs 20,516.6 crore. In the case of Bangladesh, the allocation was Rs 120 crore, the same as last year.

"Guided by the 'Neighbourhood First' policy, 64% of our schemes portfolio (Rs. 4,320 crore) is earmarked for our immediate neighbours towards implementation of a variety of demand-driven initiatives ranging from large infrastructure projects such as hydroelectric plants, power transmission lines, housing, roads, bridges, integrated check-posts, to small-scale grass-roots level community development projects as well as training and capacity building programmes,'' said an official.

India's budget allocation in terms of aid to foreign countries again saw Bhutan topping the list with the govt earmarking Rs 2,150 crore for its northeastern neighbour. India remains Bhutan's most important development partner and last year pledged Rs 10,000 crore for Thimphu's 13th five-year plan.

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