Finance Ministry Clarifies USAID Funds Used for Development, Not Politics

Finance Ministry Clarifies USAID Funds Used for Development, Not Politics

New Delhi (National Times): A recent report from the Finance Ministry of India has dismissed allegations that USAID funds were used for political activities, confirming that the $750 million assistance from the US was allocated only for government-led development projects in 2023-24.

The report, released under the leadership of Finance Minister Nirmala Sitharaman, details that USAID is currently implementing seven projects in partnership with the Indian government, focusing on agriculture, food security, renewable energy, environmental sustainability, water sanitation (WASH), disaster management, and healthcare.

“As per the Finance Ministry’s annual report, USAID funds have been strictly utilized for projects aligned with India’s development goals. No political or election-related funding is involved,” the report emphasized.

For the financial year 2023-24, $97 million (₹825 crore) was disbursed by USAID under these programs, with significant contributions directed toward climate adaptation, energy efficiency, and sustainable development initiatives.

The report comes in response to former US President Donald Trump’s allegations, wherein he claimed that the Biden administration had funneled $21 million through USAID to boost voter turnout in India, potentially influencing the country’s elections.

Reacting to the claims, External Affairs Minister S. Jaishankar said the Indian government is treating the matter seriously.

“There have been reports from the Trump administration’s side, and naturally, they are concerning. The government is examining the situation carefully. USAID was permitted to operate in India in good faith, but now there are claims of misuse. If there is any truth to this, we must identify those responsible,” Jaishankar stated.

The controversy has led to increased scrutiny of foreign funding in India, though the Finance Ministry’s report makes it clear that USAID’s contributions were strictly for development projects, not political activities.

By Rajeev Sharma

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