NEW DELHI: The Ministry of External Affairs (MEA) on Wednesday received a meager 9.2 percent increase in its annual budget allocation. For the first time money has been set aside for the Chahbahar Port in Iran that is being seen as counter to Pakistan’s Gwadar Port.
The MEA received a total of Rs. 14,798.52 crore, with Rs 12,648.29 crore earmarked for Revenue expenditure and the remaining Rs. 2150.26 crore for capital expenditure. In the previous fiscal year 2016-17 the MEA’s budgetary allocation was Rs. 13, 426 crore.
The budget is also a preview of India’s international engagement and priorities in the next financial year. The Government seeking to resuscitate the Nalanda University project has given Rs. 200 crore to the varsity coming up in Rajgir, Bihar. Construction is to begin this year for the University building and extra funds could be utilised for it.
For the first time the General Budget allocated Rs. 150 crore for the Chahbahar Port on the southeastern coast of Iran. Iran has expressed interest in Gwadar Port in Pakistan, just 72 kms from Chahbahar. Last year Rs. 100 crore was granted for the port in the Revised Estimates for the Ministry. Chahbahar is being seen as India’s gateway to Central Asia and will also help Afghanistan in overcoming its dependency on Pakistan to get access to other countries’ markets. The Indian investment in the port has been $2 billion, compared to China’s $46 billion for the development of China-Pakistan Economic Corridor of which Gwadar port is a part.
In South Asia, Afghanistan, Bangladesh and Bhutan have seen minor cuts in aid from India. However, aid to Nepal and Maldives has been increased. MEA officials, however, said that the allocations depend on the project that the government is undertaking in these countries and when certain projects are nearing completion the funds allocation for it would decline.
In the last financial year 2016-17, the Ministry had not received any hike, despite its merger with the Ministry of Overseas Affairs. Both the ministries had separately asked for Rs. 22,967.01 crore and Rs. 290.18 crore in 2016-17. But all they got was Rs. 14,662 crore in the Budget Estimates and later it was revised to Rs. 13,426 crore.