Finance Minister Nirmala Sitharaman in Parliament in New Delhi, India, Photo: Reuters
KATHMANDU: India has made a noticeable reduction in its grant to Nepal in its budget for the current fiscal year.
India’s new budget, presented in the Parliament on Saturday, makes the revelation that India has gone for reducing its grant to Nepal making it merely 8 billion Indian rupees for the current fiscal year.
Indian Finance Minister Nirmala Sitaraman has made the reduction of 4 billion rupees this year as in FY 2019/20 the budget for Nepal was 12 billion rupees.
This is a 33% reduction in last year’s budget.
The midterm budget of FY 2019/20 had consented to provide 12 billion which was actually a considerable increment in the previously proposed 10.5 billion in the budget proposed at the beginning of the year.
Meanwhile, India has increased a grant for Bhutan by 8%. In fact, 28.846 billion rupees is allocated for Bhutan this year.
Finance Minister Nirmala Sitaraman has proposed the budget of 26.98 trillion rupees for the Fiscal year 2020/21.