Budget 2026: At Rs 2,288 cr, Bhutan gets largest development aid share among neighbours
For the next fiscal, the allocation for Bangladesh has been pegged at Rs 60 crore. While the budget allocation to Bangladesh for 2025-26 was Rs 120 crore, the revised estimate put the amount at Rs 34.48 crore as ties between the two sides have been strained in the last year and a half.
Bhutan PM Tshering Tobgay with PM Modi. (Photo: Reuters/File)
Bhutan was on Sunday allocated the largest share of Rs 2,288 crore as development aid in the Union Budget for 2026-27, followed by Rs 800 crore to Nepal and Rs 550 crore each to the Maldives and Mauritius. In the latest Budget, the Ministry of External Affairs (MEA) was allocated a total of Rs 22,118 crore as against current fiscal’s Budget Estimate of Rs 20,516 crore and revised estimate of Rs 21,742 crore.
For the next fiscal, the allocation for Bangladesh has been pegged at Rs 60 crore. While the budget allocation to Bangladesh for 2025-26 was Rs 120 crore, the revised estimate put the amount at Rs 34.48 crore as ties between the two sides have been strained in the last year and a half.
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In a departure from the last few years, no allocation has been made for the Chabahar Port project amid the US-Iran tensions. In the Budget last year, an amount of Rs 100 crore was set aside for the project and the amount increased to Rs 400 crore in the revised estimate.
The total overseas development partnership portfolio for 2025-26 has been pegged at Rs 6,997 crore which is little over 31 per cent of the allocation made to the MEA.
Interestingly, out of the total allocation under the overseas development partnership portfolio, Rs 4,548 crore has been earmarked for immediate neighbours.
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The amount is expected to be spent towards implementation of a variety of initiatives ranging from large infrastructure projects such as hydroelectric plants, power transmission lines, housing, roads, and bridges to small-scale grass-roots level community development projects, according to officials.
As per revised estimates for 2025-26, Bhutan was allocated an amount of Rs 1,950 crore. In continuation with India’s special relationship with the people of Afghanistan, an allocation of Rs 150 crore has been made to that country. The allocation to Afghanistan for 2025-26 was Rs 100 crore.
While Sri Lanka has been allocated Rs 400 crore, an amount of Rs 300 crore has been set aside for Myanmar.
Bhutan PM Tshering Tobgay with PM Modi. (Photo: Reuters/File) 
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