KATHMANDU, July 6: India has announced financial assistance of 10.5 billion Indian rupees, or 16.8 billion Nepali rupees, to Nepal for the upcoming fiscal year – FY2019/20.
Presenting the Union Budget for the upcoming fiscal year to the Indian parliament on Friday, Finance Minister Nirmala Sitharaman raised total aid for various countries to IRs 81.76 billion for the upcoming fiscal year – FY2019/20 from IRs 64.66 billion of revised aid in the current fiscal year – FY2018/19.
Through the budget, the Indian government has decided to raise assistance to Nepal by 40%. In the current fiscal year, India had made a revised expenditure allocation of IRs 7.5 billion to Nepal. The revised estimate for the expenditure for assistance to Nepal has gone up from IRs 6.5 billion as proposed in the budget for the current fiscal year.
Nepal will be the recipient of the third largest Indian assistance, after Bhutan and Mauritius. India has been increasing financial assistance to Nepal with every passing year. The proposed financial assistance for Nepal for FY2019/20 is a threefold rise in Indian assistance to Nepal in FY2017/18.
India had spent IRs 3.77 billion in Nepal in FY2017/18.
India has financial assistance of IRs 28.02 billion to Bhutan, up from IRs 25.1 billion in the current fiscal year. Similarly, Mauritius has been allocated IRs 11 billion for the upcoming fiscal year.
The aid to Nepal has been allocated through the Ministry of External Affairs of India which will finance various schemes and projects in Nepal.
Other South Asian countries receiving Indian aid in the coming fiscal year are Afghanistan (IRs 4 billion), Bangladesh (IRs 1.75 billion), Sri Lanka (IRs 2.5 billion) and the Maldives (IRs 5.76 billion).
The budget has increased financial assistance for most of the countries.