Finance Minister Nirmala Sitharaman presented Interim Budget 2024. This is Sitharaman’s sixth Union Budget. India cuts the aid to Maldives in Interim Budget by 22 percent and Bhutan gets the Lion’s share.
The full-fledged budget will be presented by the new government that comes to power after the elections.
In the Union Budget 2024-25, India cut development assistance to Maldives by 22 percent as compared to last year, as per the revised estimates, at a time when bilateral relations have turned sour as newly elected Maldivian President Mohamed Muizzu appears to become pro china.
The government has allocated Rs 600 crore in grant assistance to Maldives compared to the Rs 770 crore it spent last year (as per the revised estimate). It should be noted that last year’s initial budget estimate for assistance to Male was Rs 400 crore.
Interestingly, Lakshadweep found a mention in Finance Minister Nirmala Sitharaman’s Budget speech on Thursday. Sitharaman said there would be a special focus on developing infrastructure in Lakshadweep to boost tourism.
The Union Territory of Lakshadweep will get undivided attention from the government to improve its tourist infrastructure,” FM Sitharaman said.
India cuts the aid to Maldives, grants to other nations also see a drop, Bhutan and Nepal get the biggest share
The government has reduced its overall allocation for aid to foreign countries for the forthcoming fiscal year by 10 per cent.
India and Iran have been working towards signing a long-term contract for the Chabahar Port to expand trade but this is yet to be finalised. This year, India has reduced its grant to Bangladesh by Rs 10 crore from Rs 130 crore in Budget 23-24 (revised estimate).
Bhutan, which historically receives the highest developmental assistance out of India’s neighbours, saw its allocation drop by over 13 percent.
The government allocated a total of Rs 2,068 crore to Bhutan — Rs 1,078 crore (grant) and Rs 989 crore (loan). This is less than the Rs 2,398 crore allocated to the Himalayan country — Rs 784 crore (grant) and Rs 1,614 crore (loan) — in Budget 2023-24 (revised estimate).
Furthermore, Nepal saw a slight increase — from Rs 650 crore last year (revised estimate) to Rs 700 crore this year — and so did African countries, from Rs 180 crore last year (revised estimate) to Rs 200 crore.
Like last year, India has once again cut development assistance to Myanmar, which saw a military coup in February 2021 and continues to be run by the junta.
BIG NEWS 🚨 India cuts aid to Maldives in the budget by MASSIVE 22%.
Budget allocations for Mauritius has been hiked. Modi Govt will develop Lakshdweep as World class tourist spot 🔥🔥
Meanwhile ⚡ Pakistan promised Maldives that it will address development needs of Maldives… pic.twitter.com/gbZiro2hG8
— Times Algebra (@TimesAlgebraIND) February 1, 2024
Under Budget 2024, India has allocated Rs 250 crore in grants to Myanmar compared to Rs 370 crore last year.
This was a 32 percent decrease in assistance, roughly the same as last year’s cut.
This year, India has cut its total allocation of aid to countries by 10 percent from Rs 5,426 crores in the revised estimates for 2023-24 to Rs 4,883 crores in this year’s budget.
After India Cuts aid, Pakistan shows its support to Maldives
In the Union Budget 2024-25, India cut development assistance to Maldives by 22 percent as compared to last year. On Thursday, Pakistan assured Maldives of its support to address the “pressing development needs” of the island nation in the Indian Ocean.
Pakistan’s Prime Minister Anwaar-ul Haq Kakar discussed ways to fortify the bilateral ties between the two nations; the President’s Office said in a press release that the conversation was done on the telephone.
Pakistan PM Kakar also conveyed his support and assistance to the Maldives’ efforts to mitigate the effects of climate change. The two leaders did conversation about the top priorities for the two countries and discussed about enhancing cooperation in the international arena.