Budget 2026: MEA Allocations Signal Strategic Shift, Boost for Neighbors

• Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27, including a Rs 22,119 crore allocation for the Ministry of External Affairs (MEA), an increase of Rs 1,600 crore.
• The budget reflects India's 'Neighbor First' policy and strategic balancing, with increased aid for Afghanistan, Nepal, Bhutan, and Sri Lanka.
• Afghanistan's allocation rose by Rs 50 crore to Rs 150 crore, signaling increased trust and potential impact on Pakistan's regional influence.
• Nepal's budget increased to Rs 800 crore and Bhutan's to Rs 2,288 crore, seen as a strategic response to counter China's growing presence in these nations.
• Allocations for Bangladesh and Maldives were reduced to Rs 60 crore and a Rs 50 crore cut respectively, indicating a more limited scope of cooperation.

Why It Matters: Budget 2026 MEA allocations reveal India's strategic foreign policy, boosting key neighbors while signaling shifts.