India increases budget assistance to Bhutan

The Modi government in India has substantially increased the plan and non plan financial assistance to be given to Bhutan in the fiscal year 2015-16.

The first budget of the Modi government since coming to power last year was presented to the union parliament on Saturday by Finance Minister Arun Jaitley.

The plan aid to Bhutan has been increased to Rs 49.602B (Approx $804.65M) from Rs 37.25B last year while non plan has been increased to Rs 12B (Approx 194.67M) from 11.46B last year.

Of the total planned assistance, Rs 17.194B is in the form of grant while Rs 32.408B is in the form of loan. All the non plan assistance is in the form of grant.

India is the largest donor of Bhutan in its development activities.