Parl panel favours hike in MEA Budget, says current allocation not reflective of India’s growing stature

NEW DELHI: A Parliamentary committee has said the current Budget allocation to the MEA “does not adequately support” India’s foreign policy priorities and international stature, and called for a substantial increase in it to ensure India can meet its diplomatic and development objectives effectively and assert its growing influence on the world stage.

The allocation in the Budget estimates (BE) 2025-26, at Rs 20,516.61 crores, represents a 7.39 per cent reduction from BE 2024-25 and an 18.83 per cent decrease compared to the revised estimates (RE) for 2024-25, it said.

The ‘Fifth Report of the Committee on External Affairs (2024-25) on Demands for Grants (2025-26)’

of the panel, chaired by Congress MP Shashi Tharoor, was presented in Parliament on Monday.

“Upon a detailed examination of the budgetary allocation of the Ministry of External Affairs for the fiscal year 2025-26, the Committee observe with dismay that despite India’s growing global profile and expanding diplomatic and development responsibilities, the

ministry’s allocation remains disproportionately low compared to the increasing global role that India is expected to play,” the Committee observed in its report.

India’s diplomatic influence is growing and the country is taking on an increasingly important role in global affairs, including multilateral engagements, regional security, development partnerships and responding to emerging challenges such as climate change, cyber security and global public health, it said.

“However, the MEA’s allocation as a percentage of the Government of India’s total Budget continues to decline from 0.46 per cent in FY 2024-25 to 0.41 per cent in FY 2025-26. This reduction in the MEA’s share is alarming, particularly given the broadening scope of India’s international outreach and responsibilities,” the panel said.

While the ministry has worked within its means, managing to fulfil its international obligations, it must be acknowledged that

India’s role on the global stage continues to expand, with increasingly complex diplomatic engagements, security concerns and development commitments that “demand more robust financial support”, it underlined.

“The Committee is of the firm view that the current allocation does not adequately support India’s foreign policy priorities and international stature and urgently calls for a substantial increase in the MEA’s Budget to ensure that India can meet its diplomatic and development objectives effectively and assert its growing influence on the world stage,” the report said.

The Committee, therefore, recommends that the Government should consider increasing the budgetary allocation of the Ministry of External Affairs (MEA ) by “at least 20 per cent in the next fiscal year” to meet the expanding needs and ensure more effective engagement on the global stage, it said.

While the MEA has provided a comprehensive assessment of its funding requirements, including the identification of critical areas in need of enhanced financial support, the Committee emphasised that the allocation remains “insufficient” given the challenges and opportunities India faces internationally, it said.

The Parliamentary panel in its report also highlighted three key areas that require “urgent attention”.