• India has extended crucial financial support to the Maldives through the rollover of the $50 million Treasury Bill for one more year.

• Treasury Bills (T-bills) rollover refers to the practice of reinvesting the proceeds from a maturing T-bill into a new T-bill, effectively extending the investment term.

• The move will support Maldivian government’s ongoing efforts to implement fiscal reforms for economic resilience.

• Since March 2019, the Indian government has been facilitating subscription of several such Treasury Bills by the SBI and rolling them over, annually, interest-free to the government of Maldives.

• This has been done under a unique government-to-government arrangement, as emergency financial assistance to the Maldives.

• Maldives is India’s key maritime neighbour and an important partner in  ‘Neighbourhood First’ policy and Vision ‘MAHASAGAR’ — Mutual and Holistic Advancement for Security and Growth Across Regions.

• India has assisted the Maldives in times of need and the subscription of this Treasury Bill, along with, the government of India’s decision earlier this year to extend the special quota for export of essential commodities for the Maldives, reflect India’s continued support to the government and the people of the Maldives.

• In the Union Budget 2025-26, India increased its total foreign aid allocation to Rs 5,483 crore, with the Maldives receiving the highest increase — from Rs 470 crore in the revised 2024-25 Budget to Rs 600 crore.

(The author is a trainer for Civil Services aspirants.)