KATHMANDU: India has announced that it will increase its annual grant to Nepal. As per the central budget unveiled by Finance Minister Nirmala Sitamaran on Monday for the fiscal year 2021/22, Nepal’s annual grant has increased by IRs 1.12 billion (NRs 1.89 billion) as compared to the previous fiscal year.
According to the Indian Ministry of Finance, Nepal is set to receive IRs 9.92 billion (NRs 15.87 billion) from India this year. Earlier, India had slashed the grant to Nepal in the fiscal year 2020-21. In the fiscal year 2019-20, the grant received by Nepal was NRs 11.98 billion.
This budget will be implemented from April 2021. India has introduced paperless budget for the first time. The budget has given health sector high priority.
According to Indian media, India has been allocating the largest amount of aid to neighbouring country Bhutan. Bhutan will receive IRs 30.04 billion from India in 2021-22.
In the current fiscal year 2020-21, Bhutan received IRs 22.61 billion.
Neighbouring countries receiving grant:
Bhutan: IRs 30.04 billion
Nepal: IRs 9.92 billion
Afghanistan: IRs 3.5 billion
Bangladesh: IRs 2 billion
Sri Lanka: IRs 2 billion
Maldives: IRs 2.5 billion
Myanmar: IRs 4 billion
