MEA gets Rs 20,516 cr in Budget 2025, aid to Bhutan highest at Rs 2,150 cr

In line with India's 'neighbourhood first' policy, Bhutan was on Saturday allocated the largest share of Rs 2,150 crore as development aid in the Union Budget for 2025-26 followed by Rs 700 crore to Nepal and Rs 600 crore to the Maldives.

The Ministry of External Affairs (MEA) was allocated a total of Rs 20,516 crore as against the current fiscal's budget estimate of Rs 22,154 crore and revised estimate of Rs 25,277 crore.

Like for 2024-25, an amount of Rs 100 crore has been set aside for the Chabahar port project.

Located in the Sistan-Balochistan province on the energy-rich Iran's southern coast, the Chabahar port is being developed by India and Iran to boost connectivity and trade ties.

The total overseas development partnership portfolio for 2025-26 has been pegged at Rs 6,750 crore, which is nearly 33 per cent of the allocation made to the MEA.

The outlay for overseas development assistance is an increase of about 20 per cent over current fiscal's allocation of Rs 5,667 crore.

Interestingly, out of the total allocation under the overseas development partnership portfolio, Rs 4,320 crore (64 per cent) has been earmarked for immediate neighbours.

The amount will largely be spent towards implementation of a variety of 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, according to officials.

According to revised estimates for 2024-25, Bhutan was allocated an amount of Rs 2,543 crore.

In continuation with India's special relationship with the people of Afghanistan, an allocation of Rs 100 crore has been made to that country.

The allocation to Afghanistan at the budget estimate stage for 2024-25 was Rs 200 crore. But revised estimates put the figure at Rs 50 crore.

For the next fiscal, the allocation for Bangladesh has been pegged at Rs 120 crore while Sri Lanka has been allocated Rs 300 crore.

An allocation of Rs 350 crore has been set aside for violence-hit Myanmar while the amount for Mauritius has been pegged at Rs 500 crore.

The total assistance for Latin America and Eurasia in the budget for 2025-26 was pegged at Rs 100 crore.