Budget Snapshot
Key Headlines:
The single biggest cut to Australia’s aid budget since the beginning of the aid program: Almost $1 billion was cut from 2015-16, representing a 20% cut for the year. The budget also confirms $2.7 billion of additional cuts in 2016-17 and 2017-18. By 2016-17, total Australian Overseas Development Assistance (ODA) as a share of Gross National Income (GNI) will fall to 0.22%. This is the lowest ever level since records began.
Funding to ANGOs: ACFID recognises Government efforts to uphold to its election commitment to ‘reprioritise foreign aid allocations towards effective non-government organisations that deliver onthe-ground support for those most in need.’ ANCP is to receive a proportionately small cut of 5% in 2015-16. Funding for the Civil Society WASH Fund looks to be preserved. Funding for the Australian Africa Community Engagement Scheme has been front-ended to allow the final year of programming to proceed in 2015-16. However, the Australian Volunteers in International Development program is to be cut by 30%.
Breadth and depth of the aid program: Aid to Pacific Island countries was largely quarantined, as well aid to Nepal and Cambodia. Aid to Timor and PNG was also relatively untouched, with cuts of approximately 5%.
The largest cuts to bilateral aid delivered by the Department of Foreign Affairs and Trade (DFAT) will be felt in Sub-Saharan Africa with a substantial cut of 70%.1 Countries across East Asia have also been disproportionately hit with the Philippines, Indonesia, Myanmar, Vietnam and Laos all being cut by 40%. Post-conflict and conflict-affected countries did not escape with 40% cuts to DFAT ODA in Afghanistan, Pakistan, Sri Lanka and the Palestinian Territories.
The cuts have significantly shifted our geographic aid priorities. The Pacific is now the top region for Australian aid (rather than East Asia) and PNG is now Australia’s largest bilateral aid program (previously Indonesia) followed by Indonesia, the Solomon Islands and then Afghanistan.
Australia’s ongoing ability to respond to humanitarian need: ACFID was pleased to see that funding to humanitarian response was largely sustained.
Australia’s multilateral support: Support to UN organisations (excluding emergency organisations) was predominately cut by 40% aside from UN Women. Australia has honoured replenishments to global health and education funds, though funding to Commonwealth Organisations has been cut.
