House panel: MEA budget low, does not reflect India’s growing global role
Calling for an increase in allocation, the panel, headed by Congress MP Shashi Tharoor, asked the Finance Ministry to take a more “forward-looking approach” considering the challenges the country faces as well as its future aspirations.
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Recommends 20% hike in next fiscalA parliamentary committee has said that the Budget allocation for the Ministry of External Affairs is “disproportionately low” compared to India’s growing stature and the role it is expected to play on the global stage.
Calling for an increase in allocation, the panel, headed by Congress MP Shashi Tharoor, asked the Finance Ministry to take a more “forward-looking approach” considering the challenges the country faces as well as its future aspirations.
It recommended that the government consider increasing the allocation for MEA by at least 20% in the next fiscal to meet expanding needs and ensure more effective global engagement.
The Standing Committee submitted its Fifth Report on the Demands for Grants of the Ministry of External Affairs for 2025-26 in Lok Sabha on Monday.
It said, “The committee observes with dismay that despite India’s growing global profile and expanding diplomatic and development responsibilities, the Ministry’s allocation remains disproportionately low compared to the increasing global role that India is expected to play.”
“The current Budget allocation for MEA is neither reflective of India’s growing stature on the world stage, nor does it adequately support the expanding mandate of the Ministry in line with the country’s foreign policy aspirations.”
MEA stands at the 22nd spot in terms of allocation in this year’s Budget, with an outlay of `20,516.61 crore — down 7.39% form 2024-25. In fact, MEA’s outlay is only 0.4% of the total allocation, the largest chunk going to Defence, Home Affairs, Road Transport and Highways, and Railways.
According to the report, during its meetings, the committee — it includes 30 members from both Houses — specifically asked MEA officials, including Foreign Secretary Vikram Misri, whether “foreign affairs has been perceived as requiring fewer resources in comparison to other high-priority sectors such as education, defence, etc”.
The report quoted Misri as saying that “the 0.4 per cent share does appear to be low” but that the Ministry “is able to fulfil its international obligations”. The Foreign Secretary, however, flagged three priority areas wherein a better flow of funds could be helpful, including development assistance. India’s development partnership expenditure, he said, “gains much diplomatic capital and goodwill”.
Misri also listed out support of human resources; expenditure which will be incurred as they create more posts abroad. Thirdly, Misri also flagged how the Ministry still does not have “in all countries in the world the right real estate that befits a country of India’s size and stature whether it is in terms of the embassy buildings or the residences of our heads of mission or the residences of the officers of the embassies”.
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