Budget Highlights May 2007
The 2007-08 Budget is the most significant ever for Australia's
overseas aid program, The Australian Government, will provide
$3,155 billion as official development assistance (ODA) in 2007-08,
with a real increase in ODA managed by AusAID of 21,7 per cent over
the 2006-07 Budget figure, The ratio of Australia's ODA to Gross
National Income (GNI) for 2007-08 is estimated at 0.30 per cent.
The Australian Government's White Paper — Australian Aid:
Promoting Growth and Stability, released in April last year —
provides the strategic framework for scaling up the aid program to
meet the Prime Minister's September 2005 commitment to increase
ODA to about $4 billion by 2010. This is subject to strengthened
governance and reduced corruption in partner countries, and
takes into account the effective use of the additional resources.
A $2,588 billion package of new initiatives announced through the
2007-08 Budget, with $2,541 billion through AusAID, will step up
implementation of this framework, with a range of new initiatives to
accelerate economic growth, foster functioning and effective states,
invest in people, promote regional stability and cooperation, and
improve aid effectiveness.
In 2007-08, AusAID will commence a significant new package of initiatives to take
forward the implementation of the White Paper:
ACCELERATING ECONOMIC GROWTH
INFRASTRUCTURE FOR GROWTH $505.8 MILLION
OVER FOUR YEARS
Barriers to growth will be addressed by a new
Infrastructure for Growth initiative that will increase
investment in, and improve the maintenance
of, critical economic infrastructure, particularly
transport networks.
GLOBAL INITIATIVE ON FORESTS AND CLIMATE
- $164.4 MILLION OVER FIVE YEARS
Global, greenhouse gas emissions will be addressed in
a cost-effective way through improved management
of tropical forests in developing countries, as part of
the Government's $200 million commitment, toward
a Global Initiative on Forests and Climate.
CLIMATE CHANGE PARTNERSHIPS $32.5 MILLION
IN 2007-08
Joint initiatives with multilateral partners will
support climate change adaptation and mitigation,
including through improved water resource
management and energy management.
FOSTERING FUNCTIONING AND EFFECTIVE STATES
BETTER GOVERNANCE AND LEADERSHIP -
$41 MILLION OVER TWO YEARS
Improved leadership will be promoted by a new
Better Governance and Leadership initiative. This will
include a Pacific Leadership Program, overseen by a
panel of eminent regional leaders. New investments
in civic education and raising awareness about
government accountability will increase community
pressure for good leadership.
PERFORMANCE INCENTIVES $115.6 MILLION OVER
TWO YEARS
A new Performance Incentives initiative will target
improved governance by providing additional
resources to recognise partner countries! reform
efforts. These resources will be directed towards
development priorities such as roads, health and
education.
ENHANCED AUSTRALIAN EMERGENCY AND
HUMANITARIAN RESPONSE CAPACITY
$93.2 MILLION OVER FOUR YEARS
New funding will improve the speed and
effectiveness of Australian and partner country
responses to humanitarian crises and emergencies.
Additional stand-by mechanisms, stronger regional
partners and better analysis will improve emergency
preparedness and response.
INVESTING IN PEOPLE
DELIVERING BETTER HEALTH - $585,2 MILLION
OVER FOUR YEARS
A new Delivering Better Health initiative will
contribute to the global goals of reducing child
mortality rates by two thirds and the maternal
mortality ratio by three quarters by strengthening
national health systems, addressing the priority
health needs of women and children, and tackling
diseases in the Pacific.
DELIVERING BETTER EDUCATION - $540.3 MILLION
OVER FOUR YEARS
A new Delivering Better Education initiative aims to
put ten million more children in school and improve
the quality of education for another fifty million
children. This initiative will strengthen national
education systems to improve education access and
outcomes for young people, helping equip them with
the skills to lead productive lives.
IMPROVING AID EFFECTIVENESS
ANTE-CORRUPTION FOR DEVELOPMENT
- $16.7 MILLION IN 2007-08
A new Anti-Corruption for Development initiative
will bolster oversight institutions, strengthen
management systems to deter corrupt behaviour, and
build support for anti-corruption reform.
COUNTRY, REGIONAL AND GLOBAL PROGRAMS
Summary information on country and regional
programs is included in the table below, along with
total ODA flows to each country and region. These
flows include components of the following global
programs:
HUMANITARIAN, EMERGENCY AND REFUGEE
PROGRAMS
An estimated $197.8 million humanitarian and
emergency funding will continue support for
emergency response and humanitarian programs
supporting displaced people, and key humanitarian
agencies. Funding of $15 million for the
International Refugee Fund will continue to address
the needs of people displaced by conflict.
MULTILATERAL REPLENISHMENTS
Estimated funding or $309.1 million (in cash
payments)
Continuing to work closely with the International
Financial Institutions to increase their focus on
the Asia-Pacific region, and supporting global
development efforts.
UNITED NATIONS, COMMONWEALTH AND OTHER
INTERNATIONAL ORGANISATIONS
Estimated funding: $212.5 million
Continuing support to core UN agencies and major
international organisations with proven track records
to deliver priority development outcomes in the
Asia-Pacific region.
NGO, VOLUNTEER AND COMMUNITY PROGRAMS
NGO program estimated funding: $38.3 million
Volunteer program estimated funding: $32 million
Continuing support to NGO, volunteer and
community programs, supporting activities aligned
with trie focus and priorities of the White Paper, and
strengthening people-to-people links.
| TOTAL AUSTRALIAN ODA TO PARTNER COUNTRIES ($m) |
| Program |
Focus |
Budget
Estimate
2007-08 |
| Indonesia and East Asia |
970.4 |
| Indonesia |
Priorities include increasing and sustaining economic management and growth including
addressing environmental challenges, supporting the transition to democracy, enhancing human
security and stability, and increasing the accessibility and quality of basic social services |
458.8 |
| Philippines |
Under a new country strategy, support will focus on three piliars: economic growth: basic education
with significantly increased support; and national stability and human security |
100.6 |
| Vietnam |
Assistance will focus on strengthening ttiegovernance of the institutions required for a
competitive market economy, and improving livelihoods of the rural poor |
90.8 |
| Cambodia |
Assistance will focus on strengthening the rule of law, increasing productivity and incomes
of the rural poor, and improving health service delivery |
54.0 |
| East Timor |
Building a functional and effective state, strengthening economic development and
management and improving delivery of services |
72.8 |
| China |
Governance (policy reform), environment (initially water management), and health
(communicable diseases) |
39.3 |
Other East Asia
(including Laos, Burma.
Mongolia. Thailand & regional) |
Supporting regional approaches, including Australia's agenda for APEC 2007, to address transboundary
threats such as avian influenza, and strengthen economic integration in Asia. In Laos, improving
education, economic integration, and reducing vulnerability of the poor. In Burma, meeting
humanitarian needs. Assistance in Mongolia will include targeted scholarships |
154.1 |
| Papua New Guinea and Pacific |
872.5 |
| Papua New Guinea |
Improved governance and nation building, sustainable broad-based economic growth and
increased productivity, improved service delivery and stability, and a strengthened,
coordinated, and effective response to the HIV/AIDS crisis |
355.9 |
| Solomon Islands |
Contributing to a safer and more secure Solomon Islands, repairing and reforming the machinery of government, encouraging sustainable broad-based growth, helping the Solomon islands Government
to better serve the Solomon Islands people, and building strong and peaceful communities |
223.9 |
| Vanuatu |
Addressing governance constraints to growth, strengthening the delivery of primary health care,
and supporting education |
44.5 |
| Fiji |
Support for basic health and education, and community development |
28.7 |
| Tonga |
Good governance and public sector reform, income generation, rural and outer island development |
15.7 |
| Samoa |
Activities in support of a joint strategy with New Zealand, to improve opportunities for
employment and investment and to improve service delivery |
23.3 |
| Kiribati |
Improving education, technical and vocational training, including a nurses skills upgrading
program, and supporting public sector management and performance |
15.0 |
Otter Pacific
(including Tuvalu, Nauru, Micronesia,
Cook Islands, Niue,
Melau and regional) |
Through regional programs, supporting: stronger broad-based growth; more effective, accountable
and democratic government; improved lav* andjusttce and security; and enhanced service
delivery. Through other bilateral programs supporting budget reforms, targeted scholarships and
selected trust funds |
165.5 |
| South Asia, Africa and other |
382.0 |
| Bangladesh |
Humanitarian assistance, governance, basic service delivery and rural development, along with maternal and child health and basic education |
47.6 |
| Sri Lanka |
Humanitarian and conflict resolution focus, along with education and natural resource
management |
25.0 |
| Pakistan |
Maternal and child health, basic education, technical and vocational education, and scholarships, along with continuing reconstruction assistance following the October 2005 earthquake |
27.1 |
Other South Asia
(including India. Nepal,
Maldives, Bhutan) |
Focusing on HIV, education, health and water and sanitation. Regional program partnerships
including with the Asian Development Bank, World Bank, UNAIOS and UNICEF |
49.1 |
| Africa |
Assistance through a regional development program supporting improved governance, health and
food security in selected partner countries through non-government and multilateral organisations.
This includes increased assistance through the Australian fund for Zimbabwe to respond to
humanitarian needs and to support the work of effective community-based organsrations |
94.4 |
| Middle East and
Central Asia |
In Iraq, continuing capacity building in governance and the delivery of basic services, particularly in health and agriculture, Also improving basic services for Palestinians, and in Afghanistan
providing support to complement the Oruzgan provincial reconstruction team |
138.8 |
Other Government Department ODA not attributed to a country or region
|
88.5 |
| Multilateral core contributions, other ODA and reconciliation of expenses to cash |
841.9 |
| Total ODA |
3155.3 |
| ODA/GNI ratio |
0.30% |
Source: AusAID. Refer to the Ministerial Budget Statement Australia's Overseas Aid Program 2007-08Tor more detail.
For further information on the Australian Government's overseas aid program contact:
AusAID Public Affairs — phone 02 6206 4960, fax 02 6206 4695 or write to GPO Box 887 Canberra ACT 2601.
The full Ministerial Budget Statement is at www.ausaid.gov.au
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