Union Budget 2016/17: India cuts 40% aid to Nepal

Kathmandu March 1- Indian government reduced its financial aid to Nepal by 40% in the Union Budget presented on Monday. The amount has been allocated IRs 3 billion for aid to Nepal for 2016-17, a massive decline from last year’s allocation of IRs 4.20 billion, according to Indian Express report.  

The cut comes days after PM K P Sharma Oli wrapped up his India visit that was aimed at mending ties and “clear misunderstandings” between the two countries. “The cut was not an indicator of New Delhi’s confidence in the Oli government. The issue in Nepal is that of absorption capacity, and they have been quite poor in utilising the aid being given to them…Look at the earthquake reconstruction programme…they have just set up the reconstruction authority in Nepal,” The Indian Express quoted government sources. “The aid last year could not be utilised, which led to revision of budget estimates.” Source: TKP