New Delhi, Feb 1 : The Union Budget 2026-27 has revised India’s development assistance to neighbouring and partner countries, increasing allocations for several nations such as Afghanistan, Bhutan, Nepal and Mongolia, while sharply reducing support for Bangladesh.

According to Budget documents, India’s financial assistance to Bhutan has been enhanced to ₹2,288.56 crore, reaffirming the close development partnership between the two countries. Aid to Afghanistan has been increased from ₹100 crore to ₹150 crore, signalling that additional Indian-funded projects are likely to be rolled out in the country.

Nepal has been allocated ₹800 crore in the latest Budget, an increase of ₹100 crore over the previous year, while Sri Lanka will receive ₹400 crore, up from ₹300 crore earlier. India has also significantly raised its support for Mongolia, increasing the allocation from ₹5 crore to ₹25 crore, reflecting a renewed focus on strengthening ties with the strategically important partner.

In contrast, allocations for Bangladesh have been halved to ₹60 crore from ₹120 crore in the previous Budget. Financial assistance to the Maldives has also been trimmed from ₹600 crore to ₹550 crore, while support for Myanmar has been reduced from ₹350 crore to ₹300 crore.

The Budget further shows a reduction in development assistance for Eurasian countries to ₹38 crore. However, allocations for Latin American nations have been increased to ₹120 crore, indicating a broader diversification of India’s development outreach beyond its immediate neighbourhood.

Overall, the Ministry of External Affairs (MEA) has received a higher budgetary allocation of ₹22,118.97 crore for 2026-27, up from ₹20,516.62 crore in the previous year, underlining the government’s emphasis on diplomacy and international engagement.

Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman outlined three “Kartavyas” or duties guiding the government’s policy approach. She said the Budget aims not only to accelerate economic growth but also to empower the poor, underprivileged and disadvantaged sections of society. Sitharaman added that, as the first Budget prepared at Kartavya Bhavan, it reflects the government’s resolve to balance national development priorities with inclusive and responsible governance.