India allocates grant of INR 6.50 billion, an increment of INR 1 billion to Nepal for the current FY

Published On: February 1, 2024 07:19 PM NPT By: Republica | @RepublicaNepal

For 2024/25, the southern neighbor has announced to provide Nepal with grant of INR 7 billion

KATHMANDU, Feb 1: India has increased the grant amount by INR 1 billion to be provided to Nepal for the current Fiscal Year (FY).

Unveiling the interim budget for the fiscal year 2024/25 on Thursday, the Indian government has announced to revise the grant to be provided to its northern neighbor. In the new provision, India will be providing Nepal with a total grant of INR 6.50 billion (Rs 10.40 billion) for the current FY, up from the priorly announced grant of INR 5.50 billion (Rs 8.80 billion).

Announcing the budget, Indian Finance Minister Nirmala Sitharaman said the Indian government will be providing Nepal with the grant amount of INR 7 billion (Rs 11.20 billion) for the next FY.

For the period, India will be providing Bhutan with INR 20.68 billion, which will include a loan of INR 9.89 billion. Likewise, India has announced to increase grant amount to Maldives to INR 6 billion for the next fiscal year, up from INR 4 billion this year.

The interim budget of India is seen as a stop-gap financial plan during an election year, aimed at meeting immediate financial needs before a new government is formed. The full union budget will only be released after the elections, reads CNBC, an Indian news outlet.