Kathmandu, July 23: The first budget of Indian Prime Minister Narendra Modi’s third term was unveiled on Tuesday, with Finance Minister Nirmala Sitharaman presenting the budget for the fiscal year 2024/25.
In the new budget, Nepal has been allocated a grant of INR 7 billion (NPR 11.20 billion), consistent with the amount set in February. This allocation follows the fiscal year 2023/24, where the Indian government initially allocated INR 5.50 billion to Nepal, later revising it to INR 6.50 billion. In the fiscal year 2022/23, India provided a grant of INR 4.34 billion to Nepal.
India’s budget, traditionally announced in February, was fully presented on Tuesday following the establishment of the new government.
Bhutan remains the largest recipient of India’s foreign aid. For the fiscal year 2024/25, Bhutan will receive INR 10.78 billion in grants and INR 9.89 billion in loans, totalling INR 20.68 billion.
India consistently includes and publicises its grants to neighbouring countries in its budget, with allocations to Nepal, Bhutan, Bangladesh, Sri Lanka, Afghanistan, the Maldives, and Mongolia. Bhutan and Nepal remain the top recipients of these grants.
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