KATHMANDU, Feb 1: The Indian government has allocated its annual grant of INR 7.50 billion (around Rs 12 billion) to Nepal for the fiscal year 2022/23, which is 24 percent less than the amount allocated for 2021/22.
Presenting the union budget for 2022/23 on Tuesday, Indian Finance Minister Nirmala Sitharaman said India has allocated the aforementioned amount in grants to Nepal. In 2021/22, the southern neighbor had allocated INR 9.92 billion (Rs 15.87 billion) under the heading. However, the actual amount that Nepal received over the period was only INR 6.50 billion.
The grant pledged by the Indian government for Nepal, however, is the second highest among South Asian countries. India is providing INR 22.66 billion, the topmost amount, to Bhutan.
In 2019-20, Nepal received an INR 11.98 billion (Rs 19.16 billion) grant from the southern neighbor, which was significantly reduced by 26.54 percent to INR 8.80 billion (Rs 14.08 billion) in 2020-21.
Apart from the South Asian countries, India also provides grants to Myanmar, Mongolia and a number of African and South American countries.