This Indian neighbour gets largest share of development aid in Union Budget 2026-27

Bhutan was on Sunday allocated the largest share of ₹2,288 crore as development aid in the Union Budget for 2026-27 followed by ₹800 crore to Nepal and ₹550 crore each to the Maldives and Mauritius.

The Ministry of External Affairs (MEA) was allocated a total of ₹22,118 crore as against current fiscal's budget estimate of ₹20,516 crore and revised estimate of ₹21,742 crore.

For the next fiscal, the allocation for Bangladesh has been pegged at ₹60 crore. While the budget allocation to Bangladesh for 2025-26 was ₹120 crore, the revised estimate put the amount at ₹34.48 crore as ties between the two sides remained frosty.

In a departure from last few years, no allocation has been made for the Chabahar port project. In the budget last year, an amount of ₹100 crore was set aside for the Chabahar port project and the amount increased to ₹400 crore in the revised estimate.

The total overseas development partnership portfolio for 2025-26 has been pegged at ₹6,997 crore which is little over 31 per cent of the allocation made to the MEA.

Interestingly, out of the total allocation under the overseas development partnership portfolio, ₹4,548 crore has been earmarked for immediate neighbours.

The amount is expected to be spent towards implementation of a variety of initiatives ranging from large infrastructure projects such as hydroelectric plants, power transmission lines, housing, roads, and bridges to small-scale grass-roots level community development projects, according to officials.

As per revised estimates for 2025-26, Bhutan was allocated an amount of ₹1,950 crore.

In continuation with India's special relationship with the people of Afghanistan, an allocation of ₹150 crore has been made to that country. The allocation to Afghanistan for 2025-26 was ₹100 crore.

While Sri Lanka has been allocated ₹400 crore, an amount of ₹300 crore has been set aside for Myanmar.

The total assistance for Latin American countries in the budget for 2026-27 has been pegged at ₹120 crore.