In a report tabled in the Lok Sabha, the Parliamentary Standing Committee on External Affairs also criticised the ministry for failing to develop a focused budgetary planning process to ensure proper allocation and spending of the funds.
The committee also recommended to the government to take an expeditious decision to open up missions and posts in the 68 countries where India does not have permanent mission.
It said till end of third quarter of the current fiscal, the MEA has been able to spend only Rs 8,950 crore leaving a massive amount of Rs 4,476 crore unspent.
On India's ties with Nepal, it said "India primarily suffers from a problem of perception in the country rather than that of projects.
"The Committee would, therefore, desire that the ministry should negotiate the political question of Madhesis in a more nuanced manner so as to be more mindful of perceptions in the Nepal Valley."
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