Bhutan Tops List of Indian Government Grants and Loans Recipients; Budget 2024 Highlights

The recently presented Union Budget for 2024 revealed that Bhutan has emerged as the primary recipient of Indian government grants and loans. The budget documents outlined the financial assistance provided to various foreign governments, emphasizing the significant role of Indian aid in fostering diplomatic ties and cooperation.

Key Points from the Budget:

1. Revised Estimates for 2023-24: The Indian government allocated ₹6,541.79 crore to foreign governments, surpassing the budget estimates of ₹5,848.58 crore. This included ₹4,927.43 crore as a grant and ₹1,614.36 crore as a loan.
2. Estimated Grants and Loans for 2024-25: The budget estimates for the upcoming fiscal year indicate an allocation of ₹5,667.56 crore for grants and loans to foreign nations. It’s important to note that this is part of a vote-on-account, and a comprehensive budget is expected in July after the new government assumes office.
3. Top Recipients of Indian Grants:

• Bhutan: ₹2,398.97 crore (including ₹1,614.36 crore as a loan)
• Maldives: ₹770.90 crore
• Nepal: ₹650 crore
• Myanmar: ₹370 crore
• Mauritius: ₹330 crore

1. Other Recipients:

• Afghanistan: ₹220 crore
• Bangladesh: ₹130 crore
• Sri Lanka: ₹60 crore
• Seychelles: ₹9.91 crore
• Mongolia: ₹5 crore

1. Context and Global Landscape: Finance Minister Nirmala Sitharaman highlighted the evolving global landscape, characterized by the COVID-19 pandemic, conflicts, and geopolitical shifts. She emphasized the emergence of a new world order and the challenges posed by reshoring, disruption of supply chains, and competition for critical minerals and technologies.
2. India’s Achievements: Despite global challenges, Sitharaman commended India’s successful assumption of the G20 Presidency during a challenging period for the global economy. She pointed out India’s leadership in addressing issues such as high inflation, interest rates, low growth, public debt, trade challenges, and climate issues.
3. India-Middle East-Europe Economic Corridor: The Finance Minister highlighted the strategic importance of the India-Middle East-Europe Economic Corridor, considering it a game-changer with positive implications not only for India but also for other nations.

The budget reflects India’s commitment to international cooperation and assistance, with Bhutan being a prominent beneficiary. The financial aid to various countries aims to strengthen diplomatic ties and contribute to global problem-solving amid the evolving geopolitical landscape.