Bhutan Tops List of Indian Aid Recipients in Union Budget 2024–25
According to the Union Budget 2024–25, Bhutan has emerged as the largest recipient of Indian government aid among foreign countries. This revelation comes as part of the budget documents presented by Finance Minister Nirmala Sitharaman on Tuesday.
The budget allocation for the Ministry of External Affairs (MEA) for the fiscal year 2024–25 has been set at ₹22,155 crore. This marks an increase from the ₹18,050 crore allocated in the previous fiscal year (FY 2023–24). However, it is important to note that this year’s allocation still falls short of the revised estimate of ₹29,121 crore for the same fiscal year.
The increase in budget allocation for the MEA underscores India’s continued commitment to strengthening its diplomatic and developmental ties with other countries. Bhutan’s position as the top recipient highlights the longstanding and strategic partnership between the two nations. India’s aid to Bhutan typically focuses on various developmental projects, infrastructure improvements, and economic support, reflecting a deep-rooted bilateral relationship.
Despite the budget increase, the allocation is below the revised estimate for the previous year, indicating a potential need for reassessment of financial priorities or adjustments in aid distribution. The commitment to Bhutan and other countries through the MEA’s budget reflects India’s broader foreign policy objectives and its role in regional and global diplomacy.
As per the revised estimates for 2023–24, the Indian government disbursed ₹6,541.79 crore in aid to foreign governments, exceeding the initial budget estimate of ₹5,848.58 crore for the same fiscal year. For the fiscal year 2024–25, the allocated estimate for foreign aid is ₹5,667.56 crore.
Bhutan gets mammoth share
In the Union Budget for 2024–25, Bhutan is the largest recipient of Indian aid, with an allocation of ₹2,068.56 crore. This represents a reduction from the ₹2,400 crore provided in the previous year. The revised budget for FY 2023–24 revealed a slightly lower expenditure of ₹2,398.97 crore, underscoring a marginal decrease in aid compared to the initial estimate.
The Maldives, on the other hand, is set to receive ₹400 crore in the new budget, maintaining the same level of aid as the previous fiscal year. However, the revised budget for FY 2023–24 showed a notably higher allocation of ₹770.90 crore, highlighting a significant adjustment from the initial budget figures.
These changes in aid allocations reflect shifting priorities and budgetary adjustments, with Bhutan continuing to receive the largest share of Indian foreign aid. The notable increase in aid to the Maldives in the revised estimates for FY 2023-24 may indicate adjustments based on evolving diplomatic and developmental priorities.
Which country is ranked as the top recipient of Indian grants?
1. Bhutan: ₹2,068.56 crore
2. Nepal: ₹700 crore
2. Maldives: ₹400 crore
3. Mauritius: ₹370 crore
4. Myanmar: ₹250 crore
5. Sri Lanka: ₹245 crore
6. Afghanistan: ₹200 crore
7. African Countries: ₹200 crore
8. Bangladesh: ₹120 crore
9. Seychelles: ₹40 crore
10. Latin American countries: ₹30 crore
Fiscal deficit target reduced to 4.9%
In the Union Budget presentation for 2024–25, Finance Minister Nirmala Sitharaman set the fiscal deficit target at 4.9% of GDP, an improvement from the 5.1% target outlined in the Interim Budget on February 1.
For FY 2023–24, the initial fiscal deficit target was 5.9% of GDP but was later revised to 5.8%.
The fiscal deficit reflects the gap between the government’s total revenue and total expenditure, indicating the amount the government may need to borrow. The government’s goal is to reduce the fiscal deficit to below 4.5% of GDP by FY 2025–26.
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