Financial aid to Bangladesh has been halved in the Union budget for 2026-27 after around 72 per cent of the allocation for the current fiscal remained unused amid a strain in bilateral relations. Against the budgetary estimate of ₹120 crore set aside for Bangladesh in 2025-26, the allocation this time is ₹60 crore. This is still nearly double the revised estimate of ₹34.48 crore for the current fiscal. ADVERTISEMENTAid to countries includes India's multilateral and bilateral aid and assistance programmes to neighbouring and other developing countries in Africa, Central Asia, South Asia and Latin America. Allocation for aid to countries in the budget for 2026-27 totals ₹5,685.56 crore, nearly half of which goes to Bhutan.

Source: The Telegraph February 02, 2026 16:25 UTC