New Delhi: India has sharply cut aid to Bangladesh in the Union Budget 2026-2027 presented by Finance Minister Nirmala Sitharaman on Sunday, February 1,
2026.
Though the government raised its overall allocation under "Aid to Countries" by 4 per cent from Rs 5,483 crore to Rs 5,686 crore, the outlay is however around Rs 100 crore lower than Rs 5,785 crore.
Union Budget 2026 Live Updates
Specifically for Bangladesh, the Modi government has reduced its allocation from Rs 120 crore to Rs 60 crore, given that bilateral relations between the two nations have witnessed a downfall ever since the ouster of Sheikh Hasina and the current interim government headed by Muhammad Yunus.
Bangladesh, that has been witnessing unrest and is politically unstable under Yunus, has seen a significant surge in attacks against minorities especially Hindus and also in anti-India rhetoric.
Check What's New For Income Tax in Budget 2026
Budget 2026 Focus on Tier II, Tier III Cities, Says Sitharaman
Describing cities as India's "engines" of growth, innovation, and opportunities, the government on Sunday announced that it shall now "focus on tier II and tier III cities, and even temple towns", which need modern infrastructure and basic amenities.
Presenting the Budget, Sitharaman said the budget aims to "further amplify" the potential of cities to deliver the economic power of agglomerations by mapping city economic regions (CER), based on their specific growth drivers.
"An allocation of Rs 5000 crore per CER over five years is proposed for implementing their plans through a challenge mode with a reform-cum-results based financing mechanism," she said.
In her speech, the FM made a slew of announcements on a range of sectors, including agriculture, finance, health, employment, industry and tourism.
"Cities are India's engines of growth, innovation, and opportunities. We shall now focus on tier II and tier III cities, and even temple towns, which need modern infrastructure and basic amenities," she said.
"This Budget aims to further amplify the potential of cities to deliver the economic power of agglomerations by mapping city economic regions (CER), based on their specific growth drivers," the FM added.
India's key temple towns include Varanasi, Ayodhya, Mathura in Uttar Pradesh; Somnath and Dwarka in Gujarat; Gaya and Bodh Gaya in Bihar, and Madurai and Rameswaram in Tamil Nadu, among others.
With inputs from PTI
