Union Budget 2025: A New Era of International Aid

In a significant move towards strengthening oceanic partnerships, the Union Budget 2025 has seen a substantial increase in aid for the Maldives. The government has earmarked Rs 600 crore for this Indian Ocean neighbor, marking a Rs 130 crore jump from the revised allocation last year.

This allocation comes after a notable decrease in aid last year, where the government outlay dropped from Rs 770 crore to Rs 400 crore, before being revised to Rs 470 crore. The dynamic nature of budgetary allocation for foreign countries allows for adjustments based on the progress or challenges in development partnerships.

Focus on Neighbourhood First Policy

Guided by the 'Neighbourhood First' policy, a significant portion of the schemes portfolio (64%) is dedicated to immediate neighbors. This includes a variety of demand-driven initiatives ranging from large infrastructure projects to small-scale community development projects, alongside training and capacity building programs.

Bhutan continues to receive the lion's share of aid, with the government allocating Rs 2,150 crore for its northeastern neighbor. India's commitment to Bhutan's development is unwavering, as evidenced by last year's pledge of Rs 10,000 crore for Thimphu's 13th five-year plan.

Budget 2025: A Comprehensive Approach

The total aid to foreign countries for 2025-26 stands at more than Rs 5,400 crore, reflecting a strategic approach to international relations and development partnerships. The allocation for the Ministry of External Affairs (MEA) is set at Rs 20,516.6 crore, underscoring the government's focus on fostering strong international ties and supporting global development initiatives.