After the presentation of the Interim Budget 2024 by Union Finance Minister Nirmala Sitharaman on Thursday, details emerged regarding India’s allocation of grants and loans to foreign governments. Bhutan emerged as the leading recipient, receiving a total of ₹2,398.97 crore, which includes ₹1,614.36 crore as a loan. The Indian government allocated a total of ₹6,541.79 crore in grants and loans to various nations, surpassing the budget estimates for the fiscal year 2023-24, which stood at ₹5,848.58 crore.
The breakdown of the top recipients of Indian grants and loans for the financial year 2023-24 is as follows:
- Bhutan: ₹2,398.97 crore (including ₹1,614.36 crore as a loan)
- Maldives: ₹770.90 crore
- Nepal: ₹650 crore
- Myanmar: ₹370 crore
- Mauritius: ₹330 crore
- Afghanistan: ₹220 crore
- Bangladesh: ₹130 crore
- Sri Lanka: ₹60 crore
- Seychelles: ₹9.91 crore
- Mongolia: ₹5 crore
The interim budget for the financial year 2024-25 is presented as a vote on account, with the full budget expected in July after the formation of the new government following the Lok Sabha Elections.
Finance Minister Nirmala Sitharaman focused on key areas such as fiscal consolidation, infrastructure development, agriculture, green growth, and railways. Notably, there were no changes in tax rates, disappointing some salaried individuals.
This budget marks the sixth one presented by Finance Minister Sitharaman and is the last one for the second term of the Narendra Modi-led government. The emphasis on foreign aid reflects India’s commitment to supporting neighboring countries and fostering international cooperation. Bhutan, with its significant share, highlights the close diplomatic ties and assistance provided by India to its neighboring nations.
The projected grants and loans for the fiscal year 2024-25 total ₹5,667.56 crore. However, it’s essential to note that these figures are part of the interim budget, and a comprehensive budget will be presented in July, providing a more detailed overview of the government’s financial plans for the coming year.