Parliamentary panel for hike in MEA budget says current allocation not reflective of India's growing stature

A parliamentary panel 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 fulfill 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.

The panel in its report said it "underscores that the current budget allocation for the Ministry of External Affairs is neither reflective of India's growing stature on the world stage nor does it adequately support the expanding mandate of the ministry in line with the country's foreign policy aspirations".

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 emphasises 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".

These are -- human resource development to strengthen India's diplomatic cadre; embassy and mission operations to enhance India's presence abroad; and acquisition of diplomatic real estate to establish more permanent and cost-effective missions globally, alongside increased funding for development assistance to further India's strategic objectives through goodwill and partnerships.

The Committee strongly urged the government to "prioritise these critical areas" by providing substantial additional resources to the MEA. These funds are necessary to ensure that the ministry can effectively build a robust diplomatic infrastructure capable of meeting the demands of India's expanding global role.

The panel also called on the government to reassess the ministry's budget allocations, not only at the RE stage but also in future budget cycles to ensure that the ministry has the resources it needs to fully capitalise on India's diplomatic and development opportunities. Such an investment will enable India to maximise its influence and uphold its interests on the world stage, positioning it as a leader in addressing both regional and global challenges, it added.

The Committee in its report said that explicating the rationale and strategic reasoning behind this reduction in allocation, the ministry has stated that it "undertook an assessment of the fund requirements for various heads in the MEA budget for suitable allocation within the BE 2025-26 ceiling of Rs 20,516.61 crores to ensure the ongoing projects, schemes and programmes as per the ongoing pace of the projects, schemes and programmes".

The panel also recommended that the MEA prioritises the expansion of India's diplomatic footprint abroad, which is crucial for strengthening bilateral relations and enhancing India's global standing.