India allocates financial assistance to its neighboring countries in its annual budget. Nepal is also among the recipients of grant aid allocated for its neighbors, alongside Bhutan, Sri Lanka, and the Maldives.
Over the past five years, India committed NPR 60 billion in aid to Nepal. Of that amount, NPR 49.7 billion was utilized, leaving NPR 10.3 billion unspent.
Out of INR 37.92 billion in aid allocated by India over the last five years, only INR 31.7 billion has been spent, leaving INR 6.22 billion unutilized.
In the fiscal year 2023/024, India had earmarked a budget of INR 5 billion 500 million to Nepal. Eventually, it was revised and a total of INR 6 billion 570 million has been spent.
Similarly, INR 7 billion has been allocated in the fiscal year 2024/025 and INR 7 billion for the current fiscal year.
Although INR 7.5 billion was allocated in the financial year 022/023, only 4.25 million has been spent.
Whereas, INR 4.46 billion has been spent in the fiscal year 021/022. At the beginning of that fiscal year, a budget of INR 9.92 billion was allocated.
Prior to that, in the fiscal year 2020/021, a grant of INR 8.79 billion was received. Initially, a budget of INR 8 billion was allocated.
Similarly, in the financial year 2019/020, INR 11.98 billion was spent.
India had provided INR 55.46 billion in grants to various countries in the fiscal year 2023/024. Similarly, in the budget earmarked for Fiscal Year 2024/025, it is estimated that INR 58.6 billion will be spent out of 48.83 billion announced as foreign grants. For the coming fiscal year, India has allocated INR 54.83 billion for foreign aid.
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