KATHMANDU:  The Indian Embassy in Kathmandu said that India has not cut aid to Nepal.

Being fully committed to Nepal’s socio-economic development, India has continuously endeavoured to partake in the development process in Nepal, the Embassy said in a statement on Friday.

"Our initial allocations for foreign aid, including to Nepal and other neighbouring countries, are based on actual expenditure levels in the preceding years, and take into account absorption capacity of our valued partners," the statement read.

"If there is sufficient expenditure and more is required, funds are sought by MEA [Ministry of External Affairs] at subsequent stages of the Budget Allocation Process. Possibility of channeling more funds, if required, is always open."

These figures indicate that, at the very minimum, Indian Government is spending USD 50-60 million towards Nepal’s assistance, the Embassy said, adding that any misrepresentation of figures undermines the quantum, scope and extant of the nature of socio-economic engagement between the two nations.

The Embassy said the aid flow to Nepal is routed through many channels and is in many forms.

Meanwhile, the official spokesperson of India's MEA said the "media reports that we have seen ‘India’s aid to Nepal is lower than some other countries’, etc., is completely wrong." He was responding to a query in a media briefing in New Delhi yesterday.

"I have also seen these reports which say that India’s aid to Nepal is pegged at around USD 22.27 million. This is a misleading figure which totally distorts the picture."