Foreign ministry gets record Rs 22,154 crore in Union Budget 2024-25: Where is it being allocated?

The Ministry of External Affairs (MEA) has been allocated a significant budget of Rs 22,154 crore for the fiscal year 2024-25 in the Union Budget, a notable increase from last year’s outlay of Rs 18,050 crore.

This substantial allocation has underlined India’s strategic ambition to enhance its global influence and bolster its position as a leading voice among developing nations – the ‘Global South’.

External Affairs Minister S Jaishankar hailed the allocation, writing on X, “The Budget provides MEA resources to execute key policies including Neighbourhood First, Act East, Global South and facilities for Indians traveling abroad.”

Congratulate Finance Minister @nsitharaman for presenting a budget that advances the goal of a Viksit Bharat. It responds to the aspirations of the people who have given the NDA Government a third successive mandate.

The 9 priorities highlighted by Finance Minister will…

— Dr. S. Jaishankar (@DrSJaishankar) July 23, 2024

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The budget allocation for the MEA is meticulously divided across various sectors, including aid to foreign nations, establishment expenses, and funding for autonomous bodies and international institutions.

How much has been allocated in aid to foreign nations?

A considerable portion of the budget, amounting to Rs 5,667.56 crore, is earmarked for central programs and schemes aimed at providing assistance to other nations, particularly those in need of humanitarian aid. This allocation also supports international training schemes funded by India through both multilateral and bilateral assistance programs.

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Here’s a detailed breakdown of the funds allocated for foreign nations:

• Bhutan: Rs 2,068.56 crore

• Afghanistan: Rs 200 crore

• Bangladesh: Rs 120 crore

• Nepal: Rs 700 crore

• Sri Lanka: Rs 245 crore

• Maldives: Rs 400 crore

• Myanmar: Rs 250 crore

• Mongolia: Rs 5 crore

• African countries: Rs 200 crore

• Eurasian countries: Rs 20 crore

• Latin American countries: Rs 30 crore

• Other developing countries: Rs 120 crore

• Disaster relief: Rs 5 crore

• Chabahar port, Iran: Rs 100 crore

• Mauritius: Rs 370 crore

• Seychelles: Rs 40 crore

This provision supports India’s multilateral and bilateral aid and assistance programs to neighboring and other developing countries, including those in Africa, Central Asia, South Asia, and Latin America. It also covers aid for disaster relief and humanitarian aid, specifically benefitting Bhutan, Myanmar, and Afghanistan.

What is the establishment expenditure of the MEA?

The establishment expenditure, which totals Rs 6,441.24 crore, covers the functioning of the MEA’s secretariat, embassies, and missions abroad, as well as passport and immigration services. This also includes the ‘Scheme for Welfare of Women Abroad,’ providing financial, medical, and legal assistance to women facing problems abroad.

Key components of this expenditure include the Secretariat which provides for expenditure on the Secretariat of the Ministry of External Affairs, Public Diplomacy at headquarters, State Facilitation & Knowledge Support, and maintenance of hostels and residential complexes.

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Embassies and missions are also funded supporting India’s representation at missions and posts abroad.

This allocation covers the expenditure on passport offices, including the printing of travel documents, scanning of passport applications and files, lease and purchase of passport printers, and the computerisation of passport offices.

It also includes payments to state governments and Union Territories for the administration of Central Acts, support to the Protector General of Emigrants, the Know India Programme, the Scholarship Scheme for Diaspora Children, and promotion of cultural ties with the diaspora.

Scheme for welfare of women abroad is also included in it. It provides financial, medical, and legal assistance from the Nirbhaya fund to women facing problems abroad.

This category also caters to expenditure on international conferences, entertainment of dignitaries, purchase of objects d’art, repatriation of Indian destitutes, evacuation of Indians due to war or civil disturbances, high-level visits abroad, capital outlay on public works and housing, and the Swarnapravas Yojna.

Expenditure 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 several key institutions, including: 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), India Centre for Migration, etc.

This category also caters to discretionary expenditure, including the Commonwealth Secretariat, international organisations, United Nations organisations, SAARC Secretariat, construction of South Asian University and Nalanda International University, maintenance cost of aircraft for VVIP travel, demarcation of boundaries, celebration of Pravasi Bharatiya Divas, Kailash Mansarovar Yatra, Indian Society of International Law, support for institutes of Chinese studies, Centre for Land Warfare Studies, Centre for UN Peacekeeping, and expenditure on the Foreign Service Institute.

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Interestingly, contributions towards international bodies have been reduced by 35.16 per cent in the Union budget 2024-25 from the revised estimates of 2023-24.

Nalanda International University, established by an act of Parliament in Bihar’s Rajgir district and funded by the MEA, and the South Asian University, sponsored by the eight member states of SAARC, are two key educational institutions receiving continued support.

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Under this expenditure, an allocation is also made for loans to general financial and trading institutions. This is for 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.

The Union Budget 2024-25’s allocation of Rs 22,154 crore to the MEA is being seen as a testament to India’s evolving foreign policy priorities and its commitment to enhancing global cooperation and development.