NEW DELHI: The Ministry of External Affairs (MEA) has been proposed an allocation of Rs 22,118 crore in the Union Budget of 2026-27, marking a marginal increase of Rs 376 crore, or 1.7 per cent, as against the allocation of Rs 21,742 crore made in the 2025-26 Budget.
The most notable aspect of the allocation is the significant increase in the capital expenditure head, which rises from Rs 996 crore to Rs 1,412.77 crore, registering an increase of Rs 415.89 crore, or 41.7 per cent.
The expenditure on embassies and missions abroad has increased by 9.2 per cent, from Rs 4,632 crore to Rs 5,059 crore, which reflects the cost of sustaining and strengthening India’s diplomatic presence.
The expenditure on passport and emigration facilities has gone up by a substantial 21.2 per cent, from Rs 2,008 crore to Rs 2,435 crore, which is a result of the increasing consular requirements, engagement activities with the diaspora, and the ongoing process of passport modernisation. The expenditure on the secretariat also increases by 7.9 per cent to Rs 761.21 crore.
The total aid to countries slightly reduces, from Rs 5,785.40 crore to Rs 5,685.56 crore, a decrease of 1.7 per cent.
However, the changes within the total indicate targeted hikes that support India’s neighbourhood-first and Global South policies.
Bhutan retains the top position with an increase of 17.4 per cent, from Rs 1,950 crore to Rs 2,288 crore.
Afghanistan records a significant increase—from Rs 100 crore to Rs 150 crore, a 50 per cent jump—while Sri Lanka’s allocation increases by 33.3 per cent to Rs 400 crore.
Nepal’s allocation is Rs 800 crore, the Maldives Rs 550 crore, Myanmar’s Rs 300 crore, and African countries Rs 225 crore, indicating India’s development and humanitarian efforts.
Aid to Latin American countries rises to Rs 120 crore, while Eurasian and other developing countries continue to receive limited support, indicating a balanced development diplomacy strategy.
The allocation for supporting international training programs is at Rs 1,292 crore, a marginal decrease of 1.6 per cent, but this also reiterates India’s commitment to capacity-building efforts.
The Indian Council for Cultural Relations (ICCR) received an increase of 11.5 per cent, increasing to Rs 391 crore.
This is a positive development for cultural diplomacy and educational exchanges. Allocation for cultural and heritage schemes remains the same at Rs 20 crore.
Notwithstanding the increase in core and capital spending, Special Diplomatic Expenditure receives a drastic cut of Rs 912 crore, reducing from Rs 5,032 crore to Rs 4,120 crore, a decrease of 18.1 per cent.
This is an indication that the government is taking a more austere approach to discretionary foreign policy spending.
The allocation for international cooperation is at Rs 589.19 crore.
The allocation for regional academic bodies such as Nalanda University and South Asian University has been held at Rs 200 crore and Rs 170 crore, respectively.
The MEA’s Budget allocation for infrastructure capital spending increases substantially—from Rs 275 crore to Rs 451 crore—by a whopping 64 per cent, one of the sharpest increases in the MEA Budget.
This is an indication of the upgrade of infrastructure for missions, offices, and housing abroad.