The government has allocated more than Rs 990 crore for India’s G20 presidency despite a slight increase in the foreign ministry’s budget for 2023-24.

The Budget Estimate (BE) allocation for MEA for 2023-24 is Rs 18,050 crore, which is Rs 800 crore or 4.64% higher than the allocated budget of Rs 17,250 crore for 2022-23. This is also 6.34% higher than the revised estimate of Rs 16,972.79 crore for 2022-23.

Officials said that the increase in MEA’s overall budget is consistent with its foreign policy goals and broad development partnership footprint.

Allocating more than Rs 990 crore to India’s G20 presidency shows the importance India attaches to the premier forum for global economic cooperation, officials said.

India, which takes over the G20 presidency in December 2022, is finally scheduled to host the G20 summit in September 2023, which is expected to be one of the most high-profile international meetings the country will host.

Capital expenditure will increase by 7% from Rs 1,416.23 crore in FY22-23 to Rs 1,520.21 crore in FY2023-24.

The Development Partnership Portfolio, comprising the ministry’s aid chiefs, remains the priority of the budget allocation for the fiscal year, accounting for 32.40% of the total budget allocation.

Under India’s “Neighbourhood First” policy, the most significant component of the aid mix is aid to Bhutan (Rs 2,400 crore), accounting for 41.04% of the NMEA’s development aid.

The Rs 400 crore aid allocation to the Maldives has been increased to meet funding needs mainly for ongoing projects such as UTF Development Project, Greater Male Connectivity Project and High Impact Community Development Project, among others.

To continue the special relationship with the Afghan people, the aid budget allocation for Afghanistan has been maintained at Rs 200 crore.

India has allocated Rs 100 crore for Iran’s Chabahar port, signalling the importance of the facility in regional connectivity efforts.

A specific budget allocation of Rs 1,002.78 crore has been allocated to meet the funding requirements to fulfil the ePassport issuance commitment and implement the Passport Seva Project V2.0, which will bring technological upgrades to the passport.