India boosts grant to Nepal in revised Fiscal Year 2024-25 budget

KATHMANDU: In a significant move, the Indian government has increased the grant amount allocated for Nepal in the interim budget unveiled for the fiscal year 2024/25. The announcement came on Thursday as part of India’s interim budget, showcasing a revision in the grant provided to its northern neighbor.

According to the updated provisions, India is set to extend a total grant of INR 6.50 billion (Rs 10.40 billion) to Nepal for the current fiscal year, marking a notable increase from the initially announced grant of INR 5.50 billion (Rs 8.80 billion).

Indian Finance Minister Nirmala Sitharaman, while presenting the budget, highlighted the commitment to support Nepal through this enhanced grant. Additionally, a grant amount of INR 7 billion (Rs 11.20 billion) has been earmarked for the subsequent fiscal year, underlining India’s continued financial assistance to its neighboring nation.

For the upcoming period, India is allocating INR 20.68 billion to Bhutan, encompassing a loan component of INR 9.89 billion. Furthermore, the grant to the Maldives for the next fiscal year has been raised to INR 6 billion, reflecting an increase from the INR 4 billion allocated in the current fiscal year.

The interim budget presented by India is recognized as a temporary financial plan during an election year, designed to address immediate financial requirements before the formation of a new government. A comprehensive union budget is expected to be released post the elections, as reported by CNBC, an Indian news outlet.

This move by India to augment its financial support to Nepal reinforces the diplomatic and economic ties between the two countries, signifying a commitment to mutual cooperation and development.