JOIN USSeveral projects funded by India in Nepal slowed down in the months before the April 25 earthquake that devastated the country, as Prime Minister Narendra Modi’s government drastically cut down budgetary allocations for New Delhi’s development aid to neighbour.
Though Rs 450 crore was earmarked for funding development projects in Nepal in 2014-15, the allocation had to be reduced by Rs 150 crore, as the Ministry of Finance made an unprecedented 14.3% cut in the overall budget for the Ministry of External Affairs (MEA).
Allocation for the MEA for “Aid to Nepal” was reduced to Rs 300 crore in the Revised Estimate for 2014-15. The budgetary allocation for India’s development projects in Nepal in 2015-16, too, is six per cent less than the amount initially earmarked in 2014-15. An amount of Rs 420 crore has been earmarked for the same in 2015-16.
New Delhi won accolades from around the world for its quick response to Kathmandu’s call for assistance after the April 25 earthquake left a trail of devastation in large areas of Nepal.
Even as the Indian Army and National Disaster Relief Force personnel are engaged in relief and rescue operations across Nepal, prime minister has already reassured the government and people of the neighbouring nations that New Delhi would also support reconstruction of the devastated neighbouring country.
Senior officials told Deccan Herald that beyond the usual annual allocation under ‘Aid to Nepal’, the government would have to earmark substantial additional fund over the next several years to keep its commitment for supporting reconstruction of the neighbouring country.
In a communiqué to the Parliamentary Standing Committee on External Affairs, the MEA stated that the allocation of funds under ‘Aid to Nepal’ in 2014-15 “had to be reduced in order to conform to the overall Revised Estimate ceiling communicated by Ministry of Finance”.
“None of the ongoing projects in Nepal were curtailed due to the ministry’s prioritisation of available Plan and Non-Plan budget. However, some payments have been deferred to the next financial year without curtailing ongoing cooperation,” the MEA wrote.