The Australian budget announced billions of dollars worth of cuts to foreign aid. What will this mean for development work?

The Australian Budget 2014 report released last week announced billions of dollars worth of cuts to foreign aid.

Budget changes that freeze foreign aid and change the way it is indexed mean it will be effectively cut by more than $7bn over five years. The foreign minister, Julie Bishop, said the budget changes were supporting a sustainable and affordable aid programme. “Australia’s aid budget will be spent where we can make the most difference," she said.

We asked Australian aid organisations affected by the cuts what impact this will have on their work. Below is a selection of their responses.

Dr Helen Szoke - chief executive officer, Oxfam Australia



"This budget falls devastatingly short, with nations such as the UK delivering double Australia’s effort in tackling global poverty." Photograph: Eddie Carbonell

The Australian government has torn up its promise to increase aid to those who need it most, handing down a budget that will overturn vital investment needed to tackle the global challenges of poverty and inequality.

While it is heartening to see small increases in funding to the Asia Pacific regions, there is little cause for celebration in Africa and the Middle East, which have seen a heartbreaking cut in aid. Australia has one of the strongest economies and lowest debt levels in the world and we have a proud history of helping those in need.

This budget falls devastatingly short, with other nations including the UK delivering more than double Australia’s effort in tackling global poverty.

We welcome the foreign minister's focus on gender equality and women's empowerment, education, health, and the commitment to being a principled humanitarian donor.

However from what we have seen, the investment in this area it is insufficient given the rising impact of humanitarian crises and increasing frequency of disasters.

Christine Carolan - national projects coordinator, Australian Catholic Religious Against trafficking in Humans (Acrath)

Facebook Twitter Pinterest Christine Carolan: "The foreign aid cuts are a national disgrace." Photograph: Acrath

Our aid budget funds among other things access to clean drinking water, education programmes for girls, and counter human trafficking initiatives in our South-east Asian region. These are essentials for some of the world’s poorest people, and yet they come and go at the whim of the Australian treasurer.

In our advocacy work in the past two years, we have called on the Australian government to commit to an aid budget of at least 0.7% of GNI by 2015-16. This was the vision of the global community when the UN developed the millennium development goals as our planet began the new millennium – we could eradicate extreme poverty by shouldering our responsibility to build a more just world.

And how does Australia shape up now, one year away from the 2015-16 target?

At present, the foreign aid budget is 0.33% and will, after this budget, be 0.29% in 2017-18. This is a national disgrace. And it needs to be trumpeted in the media.

Robert Yallop - principal executive, Care Australia



Facebook Twitter Pinterest Robert Yallop: "As a nation, we do not have to choose between Australia’s economic interests and helping people. We can afford to do both." Photograph: Care Australia

The Australian government has broken pre- and post-election promises to keep aid funding in line with the Consumer Price Index. However what makes the $7.6bn, five-year cut to Australia’s aid programme so disappointing is that unlike many other areas, foreign aid has been subject to a series of consistent and heavy cuts since 2012.

This is a 9.7% cut to Australia’s aid efforts over the coming five years, while the government’s spending is projected to increase by 9.3% over the same period. In short, while many sectors are now reeling from the government’s cuts that were announced last night, foreign aid has already been taking many hits.

While the immediate cuts have been made to Africa and Latin America, the future impact will likely be felt on the ground in some of Australia’s poorest neighbours like Cambodia and Timor-Leste, as our work faces the potential of shrinking funding.

As a nation, we do not have to choose between Australia’s economic interests and helping the 1.3bn people living in extreme poverty. Australia is still one of the wealthiest countries in the world, and we can afford to do both.

The government does deserve recognition for prioritising women and girls as part of the aid budget. As an organisation that firmly believes that women’s empowerment is one of the cornerstones of ending poverty, we congratulate the government for its strong focus on improving life for the region’s women.

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