The Abbott government has taken a knife to foreign aid, slashing financial assistance to Indonesia by nearly half in what could be considered retribution for the recent executions of Bali nine members.

Under budget measures handed down by treasurer Joe Hockey earlier this year, Australian aid to Indonesia fell from $605.3 million to $366.4 million, a move that could be considered as payback for the deaths of Andrew Chan and Myuran Sukumaran.

In February this year, the prime minister threatened to withdraw aid to the country if the Indonesian government continued with its plans to execute the pair by firing squad.

"We will be letting Indonesia know in absolutely unambiguous terms that we feel grievously let down," Mr Abbott said.

However, the cuts might not be entirely politically motivated with aid projects, such as the Boxing Day tsunami in Indonesia, set to expire this year.

As well as dropping aid to Indonesia, the government has proposed to pull assistance to Africa by 70 per cent.

Treasury is also pushing for the withdrawal of aid to the Philippines and Vietnam by 40 per cent.

Countries that escaped all but unscathed were Cambodia and Nauru, while Papua New Guinea had its funding cut by just 5 per cent. Given these countries have links with Australia in the resettlement and processing of asylum seekers the fact funding was relatively untouched comes as little surprise.

Foreign Affairs Minister Julie Bishop said Australia would provide $4 billion in total Official Development Assistance in this year's budget.

Over the next three financial years, $3.7 billion will be cut from the overall foreign aid budget, as forecast in December's mid-year economic fiscal outlook.

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