Kathmandu, February 1

India has announced financial assistance of INR eight billion (Rs 12.80 billion) to Nepal for the upcoming fiscal year 2020-21, which is a significant drop in comparison to the last fiscal year.

Nepal saw a cut of INR four billion from the INR 12 billion that it received in the previous fiscal year from the southern neighbour through its revised budget.

Nepal had received around INR 7.63 billion in fiscal year 2018-19.

Presenting the Union Budget for the upcoming fiscal year today, Indian Finance Minister Nirmala Sitharaman said India’s aid to the neighbouring countries for the fiscal year 2020-21 stands at INR 50.84 billion.

This forms a substantial chunk of India’s aid globally, which stands at INR 69.06 billion. The total aid to countries has decreased by about INR 560 million.

Bhutan continued to see maximum aid allocation in today’s budget speech at INR 28.84 billion, with Afghanistan getting INR four billion, Maldives and Myanmar will be getting INR three billion each and Bangladesh and Sri Lanka have been allocated INR two billion each. Mongolia was allotted INR 20 million.

Nepal will still be a recipient of the third largest Indian assistance, after Bhutan and Mauritius, which will receive INR 10.25 billion in the upcoming fiscal year.

At a glance

Actual

Budget

Revised

Budget

2018-19

2019-20

2019-20

2020-21

INR 7.63bn

INR 10.50bn

INR 12bn

INR 8bn

Source: Ministry of External Affairs, India