Finance Ministry Refutes allocation for ‘voter turnout’, amid USAID fund controversy

A major political controversy has erupted in India regarding the alleged role of the United States Agency for International Development (USAID) in influencing Indian elections. The debate intensified after the latest annual report from India’s Ministry of Finance disclosed that USAID had funded seven projects in the country, amounting to a total of $750 million during the financial year 2023-24.

The report, published by the Finance Ministry, states, “Currently, seven projects worth a total budget of approximately USD 750 million are being implemented by USAID in partnership with the Government of India.” This revelation comes at a time when allegations of foreign intervention in India’s democratic process have sparked significant political turmoil.

Breakdown of USAID’s Funding in 2023-24

For the financial year 2023-24, USAID made financial commitments amounting to $97 million (approximately ₹825 crore) under the seven projects currently underway. The Department of Economic Affairs (DEA), which functions under the Finance Ministry and serves as the nodal agency for bilateral funding agreements, provided a detailed breakdown of these projects in its report.

Contrary to widespread speculation and political accusations, the report clarifies that none of the funds allocated during this period were directed toward enhancing voter turnout in India. Instead, the funding was dedicated to initiatives focused on key developmental areas such as:

• Agriculture and Food Security – Programs aimed at improving agricultural sustainability and food production.
• Water, Sanitation, and Hygiene (WASH) – Efforts to ensure clean drinking water and better sanitation facilities.
• Renewable Energy – Projects promoting sustainable energy solutions and reducing dependency on fossil fuels.
• Disaster Management – Strengthening India’s preparedness for natural disasters and improving disaster response mechanisms.
• Health Sector Improvements – Enhancing public health infrastructure and services.
• Sustainable Forests and Climate Adaptation Program – Environmental conservation initiatives aimed at mitigating climate change effects.
• Energy Efficiency Technology Commercialization and Innovation Project – Promoting energy-efficient technologies and fostering innovation in the energy sector.

Historical Context: USAID’s Presence in India Since 1951

The United States’ bilateral development assistance to India commenced in 1951, with USAID being the primary agency facilitating economic aid. Over the past several decades, USAID has provided India with financial assistance exceeding $17 billion, covering a diverse range of sectors and supporting more than 555 projects. The agency has worked in collaboration with the Indian government on numerous initiatives designed to bolster economic development, environmental sustainability, and social welfare programs.

Political Uproar Over Allegations of Election Influence

The controversy surrounding USAID’s role in India intensified earlier this month following a claim made by the Elon Musk-led Department of Government Efficiency (DOGE). The organization alleged that it had canceled a $21 million grant that was reportedly intended to boost voter turnout in India. This claim quickly became a flashpoint in Indian politics, with different parties taking opposing stances on the matter.

Adding fuel to the fire, former U.S. President Donald Trump also made repeated assertions that USAID, under the previous administration led by Joe Biden, had allocated $21 million for voter turnout initiatives in India. These claims have sparked serious concerns about potential foreign influence in India’s democratic process, prompting the Indian government to seek clarity on the matter.

 Jaishankar Expresses Concern

India’s External Affairs Minister, S. Jaishankar, addressed the controversy, stating that the information put forth by the Trump administration was “concerning” and warranted further investigation by the Indian government. Speaking on the matter, Jaishankar emphasized that USAID had been permitted to operate in India “in good faith, to carry out good faith activities.” However, he raised concerns over suggestions emerging from the United States that some activities conducted by USAID may have been executed “in bad faith.”

The controversy has provided fresh ammunition to the opposition, with the Congress party launching a scathing attack on the ruling Bharatiya Janata Party (BJP). Congress leaders accused the BJP of indulging in “anti-national work” by allegedly spreading falsehoods regarding USAID’s funding in India. They further questioned why Prime Minister Narendra Modi and External Affairs Minister Jaishankar had remained silent when former U.S. President Donald Trump and Elon Musk made repeated remarks that some perceived as “insulting” to India.

Congress General Secretary Jairam Ramesh took to social media to criticize the BJP, calling them a “procession of liars and illiterates.” He pointed out that the much-publicized $21 million USAID funding was not directed toward India’s voter turnout efforts, as claimed by the BJP and its supporters. Instead, Ramesh clarified that the amount in question was allocated to Bangladesh in 2022 for similar purposes, exposing what he termed as BJP’s misinformation campaign.

The allegations of foreign influence in India’s electoral process have sparked a heated debate, with political parties, government officials, and international observers closely watching the developments. While the Finance Ministry’s report attempts to dispel rumors regarding USAID’s funding allocations, the political storm is far from over.

As the Indian government investigates the claims further, the controversy underscores the broader concerns surrounding foreign funding, sovereignty, and electoral integrity. With national elections on the horizon, the issue is likely to remain a significant talking point in the political landscape, shaping public discourse and party narratives in the coming months.