• By Imran Zafar
  • Wed, 24 Jul 2024 12:04 AM (IST)
  • Source:JND

The Ministry of External Affairs (MEA) has been allocated a substantial budget of Rs 22,154 crore in the fiscal year 2024-25, which witnessed a significant rise from the previous year’s Rs 18,050 crore outlay. This notable increase in the budget is expected to achieve India’s strategic ambition to enhance its global influence and strengthen its role as one of the leading voices in international politics. 

External Affairs Minister S Jaishankar lauded the allocation stating that the resources provided will help the ministry to execute key policies like Neighbourhood First, Act East, Global South and facilities for Indians traveling abroad.

However, you might wonder where this significant amount of taxpayers' money the MEA will spend and whether it will benefit Indians in any direct or indirect way. To answer this question we have broken down the MEA’s budget for you.   

India's Aid To Foreign Nations

A considerable portion of the MEA budget, amounting to Rs 5,667.56 crore, is dedicated to schemes aimed at providing aid to foreign nations, particularly those requiring humanitarian assistance. This allocation supports international training schemes funded by India through both multilateral and bilateral assistance programs. Here are the list of top 10 recipients of foreign aid from India.

1. Bhutan: Rs 2,068.56 crore

2. Nepal: Rs 700 crore

2. Maldives: Rs 400 crore

3. Mauritius: Rs 370 crore

4. Myanmar: Rs 250 crore

5. Sri Lanka: Rs 245 crore

6. Afghanistan: Rs 200 crore

7. African Countries: Rs 200 crore

8. Bangladesh: Rs 120 crore

9. Seychelles: Rs 40 crore

10. Latin American countries: Rs 30 crore

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Establishment Expenditure

The establishment expenditure for the MEA totals Rs 6,441.24 crore. This budget covers the functioning of the MEA’s secretariat, embassies and missions abroad, as well as passport and immigration services. Below are the details about the components of establishment expenditure.

- Secretariat: Costs related to the Ministry’s headquarters, including public diplomacy, state facilitation, knowledge support, and maintenance of residential complexes.

- Embassies and Missions: Funding to support India’s representation at missions and posts abroad.

- Passport Offices: Expenditure on passport offices, including the printing of travel documents, scanning of applications, lease and purchase of passport printers, and computerisation of passport offices.

- Support Services: Payments to state governments and Union Territories for administering Central Acts, support to the Protector General of Emigrants, Know India Programme, Scholarship Scheme for Diaspora Children, and cultural ties with the diaspora.

- International Conferences and Dignitary Entertainment: Expenditure on international conferences, dignitary entertainment, purchase of objects d’art, repatriation of Indian destitutes, evacuation of Indians due to war or civil disturbances, high-level visits abroad, and capital outlay on public works and housing.

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Loans To Financial Institutions

An allocation is also made for loans to general financial and trading institutions. This includes funds provided to Exim Bank against the invocation of Government of India guarantees for loans to other countries, which are considered doubtful debts. This expenditure is met from the Guarantee Redemption Fund.

Support for Key Educational Institutions

- Nalanda International University: Established by an act of Parliament in Bihar’s Rajgir district, this university is funded by the MEA.

- South Asian University: Sponsored by the eight member states of SAARC, this university receives continued support from the MEA.

Funding for Autonomous Bodies

Autonomous bodies and international universities receive a combined allocation of Rs 10,045.87 crore. This funding supports grants-in-aid for salaries and general expenses of key institutions, including the Indian Council of Cultural Relations (ICCR), Indian Council of World Affairs (ICWA), Society for Research and Information System for Non-Aligned and Other Developing Countries (RIS), and India Centre for Migration.