Fed: Australia to boost aid spending in May budget

AAP General News (Australia)
04-10-2006
Fed: Australia to boost aid spending in May budget

SYDNEY, April 10 AAP - Australia will boost its aid spending by up to $300 million
in the May budget but its programs will emphasise good governance and tackling corruption
rather than alleviating poverty.

An Office of Development Effectiveness will also be established within AusAID to ensure
funding achieves its aims and to give feedback to the government, The Australian Financial
Review says today.

Foreign Minister Alexander Downer will outline the new funding regime in a white paper
in a fortnight.

Australia currently spends about $2.5 billion on direct aid.

An aid industry source told the Financial Review that "aid will no longer be seen as
charity" in the white paper which will extend the principle of mutual obligation.

The development follows a speech by Prime Minister John Howard to the United Nations
in December in which he said he would boost aid spending to $4 billion a year, or 0.36
per cent of GDP, by 2010.

AAP lb

KEYWORD: AID

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