Federal Budget 2014: More than $7.5 billion cut from foreign aid

WHILE the AFP and spooks in the Australian Secret Intelligence Service had minor cuts, there’s been a massive reversal in fortune for the world’s poor.

Rejected ... the Australian government has reversed its decision to join African aid groups. Senegalese President Macky Sall (right) with President of The African Development Bank Donald Kaberuka.

THE overseas aid budget has been slashed by $7.6 billion in the biggest national security related cut in the 2014-15 budget.

While the Australian Federal Police and overseas spooks in the Australian Secret Intelligence Service suffered some minor cuts, the big talking point will be the massive reversal in fortune for the world’s most needy.

Soft diplomacy or development funding has been shown to generate a significant peace dividend since the end of WW2.

The Abbott Government abolished the overseas aid agency AusAID earlier this year and will now cap the bureaucratic costs to administer the aid vote with Foreign Affairs at five per cent of the total.

In a direct appeal to a growing sentiment that ‘charity begins at home’, Foreign Minister Julie Bishop used the budget documents to announce the government had reversed earlier decisions to join the African Development Bank Group and the International Fund for Agricultural Development.

Rejected ... the Australian government has reversed its decision to join African aid groups. Senegalese President Macky Sall (right) with President of The African Development Bank Donald Kaberuka.

The hard line against overseas aid funding will have a significant impact on programs around the globe.

“Australia’s aid program is being reshaped to ensure it is effectively promoting economic growth and poverty reduction, reflecting our national interest and the changed international context,” the budget papers said.

It also said that it would “improve the enabling environment for the private sector to drive growth.”

Making changes ... Foreign Minister Julie Bishop at Parliament House in Canberra.

Meanwhile the Federal police will contribute savings of more than $50 million over four years through increased efficiencies and the end of a five-year recruiting drive.

It will also be given an extra $10.2 million to stand up an anti-gang squad in Western Australia.

Savings of $3.5 million will be achieved by reducing the number of Human Rights Commissioners and through cancelling a human rights education program.

$9.5 million will be cut from the budget bottom line by reducing funds for an indigenous Languages Support Program.

Selected streets and schools around the nation will be safer under programs worth $50 million and $18 million over four years.

Another $10.2 million in savings will be achieved by consolidating privacy and freedom of information functions.

Originally published as Federal Budget 2014: More than $7.5 billion cut from foreign aid