India has reduced development funds for Bangladesh to 1.2 billion rupees for the upcoming fiscal year 2024-25, around 40 percent down from Rs 2 billion last year.  

However, the Union budget saw increased allocations for development projects in other neighbouring countries like Nepal and Sri Lanka for the fiscal year, The Indian Express reported on Tuesday.

The allocation for Nepal is Rs 7 billion. It was Rs 5.5 billion last year which was revised to Rs 6.5 billiion. Similarly, the budgetary allocation has increased for Sri Lanka to Rs 2.45 billion compared to Rs 1.5 billion (an increase of Rs 0.95 billion).

India had bailed out Sri Lanka when its economy crashed and has provided grants and a line of credit worth $4 billion. The budgetary allocation for development projects in Seychelles is Rs 400 million this year (an increase of Rs 300 million from last year when it was Rs 100 million).

The budgetary allocations for Afghanistan (Rs 2 billion) and Maldives (Rs 4 billion) are the same as last year. There has been a reduction for Bhutan and Myanmar. Even though Bhutan gets the lion’s share at Rs 20.68 billion, this is Rs 3.32 billion lower than last year.

Myanmar’s budget this year is Rs 2.5 billion compared to Rs 4 billion last year. Mauritius’ allocation has reduced by Rs 907.9 million, now standing at Rs 3.7 billion.

Mongolia’s allocation sees a minimal reduction of Rs 20 million. Meanwhile, the Chabahar port project in Iran for the third consecutive year will have an allocation of Rs 1 billion.